A historic decline in Gazprom's exports to Europe and an increase in Asian demand for Russian oil

 Today, Tuesday, the Russian economic newspaper "Vedomosti" quoted Gazprom data that the company's exports to the European Union via Ukraine fell to a record level of 951.4 million cubic meters in January, while the demand for Russian oil continues from the Asian markets, which witnessed Exports transported to it from the Urals crude oil this month increased significantly.

The newspaper stated that Gazprom was pumping to the European Union between 41 million and 43 million cubic meters through Ukraine per day during the second half of 2022.

Starting from the fifth of January, the daily quantities began to decline sharply, as only 24.4 million cubic meters were being pumped per day by January 19.

The newspaper added that the decline is mainly due to the decline in demand for Russian gas in Europe, amid an unusually mild winter.

Increased exports to Asia

On the other hand, the demand for Russian oil continues from the Asian markets, to which exports of Urals crude oil transported to by sea increased significantly this month, which helped Moscow cope after most Western markets stopped buying, according to data from traders of the Refinitiv Eikon platform. ).

The data shows that at least 5.1 million tons of Urals crude were shipped from the Russian ports of Primorsk, Ust Luga and Novorossiysk to Asia in January.

The final destinations for another 1.9 million tons of Urals crude have yet to be determined, but traders expect most of it to also end up in India or China.

As a result, shipments of Urals crude to Asia this month could amount to about 7 million tonnes, up about 2 million from December, according to Reuters calculations.

The data also shows that Turkey and Bulgaria are still the only buyers of this crude in European ports.

Meanwhile, Russian oil flows to Turkey this month were estimated at 400,000 tons, while Bulgaria, which is exempt from the European Union's embargo on Russian oil, is set to receive about 560,000 tons of Urals and Siberia Light crude.

Russia has shifted its trade away from the European Union to other markets, especially in Asia and Latin America, amid the deep political dispute that followed the start of the Russian war on Ukraine last February.

Russia prohibits adherence to a price ceiling

On the other hand, the Russian government prevented, on Monday, domestic oil exporters and customs authorities from adhering to the price ceiling imposed by the West on its crude oil.

This measure was issued to help implement President Vladimir Putin's decree of December 27, which bans the supply of crude oil and its derivatives from February 1, for a period of 5 months, to countries that adhere to the price ceiling.

The new Russian decision prohibits companies and individuals from including oil price ceiling mechanisms in their contracts. They must also inform customs officials and the Department of Energy of any attempts to impose a price cap.

In addition, customs authorities are required to prevent shipments from leaving Russia if they find that such mechanisms have been implemented.

Starting from the fifth of next February, the West intends to impose two ceilings on the prices of Russian oil products, one on products traded at a premium to crude oil prices such as diesel and gas oil, and the other on products traded at a discount to crude oil prices such as fuel oil.

Source: Reuters