The International Energy Agency (IEA) said on Wednesday that Russia’s oil revenues fell 42% from a year earlier in February, hit by G7 and European Union sanctions, even as the country continues to sell roughly the same amount of crude oil.

“We estimate Russia collected $11.6 billion in February, up from $14.3 billion in January and nearly $20 billion a year earlier,” the monthly oil report said.

However, “a year after Russia’s invasion of Ukraine, this country continues to send approximately the same amount of oil to world markets. This shows that the G7 sanctions regime has not reduced the global supply of crude oil and petroleum products, while limiting Russia’s ability to generate export earnings.”

In February, Russian oil production remained at approximately the same level as before the conflict. Exports fell by just 500,000 barrels per day to 7.5 million barrels per day (mb/d).

Over the past year, 4.5 mb/d of Russian oil, previously destined for the EU, North America and other OECD members, has largely found other buyers.

Currently, Russian oil goes mostly to Asia, especially India and, to a lesser extent, China, which are countries that benefit from price cuts.

In February, Russian oil accounted for about 40% and 20% of the oil imported by India and China, respectively; According to the IEA, both countries together absorbed more than 70% of Moscow’s exports.

For other oil products (except crude) the buyers are Turkey, countries of Africa and the Middle East.

Russia says it will reduce oil and gas production

The news comes after Russian Energy Minister Mykola Shulginov said on Wednesday morning that Russia’s oil and gas production will decline in 2023.

“In 2023, for oil, we expect the level to be slightly lower, partly due to a voluntary reduction in production,” Shulginov said in a speech before the State Duma, according to the TASS news agency, which is quoted by Reuters.

“The level of gas production will continue to decrease both due to the withdrawal from the European market and due to the reorientation of energy flows,” he added.

Russia has sharply reduced energy exports to Western countries, partly due to Western sanctions and price restrictions on Russian oil.

While it has been able to divert some of its oil to major buyers such as India and China, Moscow announced in February that it would cut production by 500,000 barrels per day in response to the price cap.

(article photo: DreamsTime.com)