Russia is Planning to Increase Domestic Energy Consumption

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Russia is Planning to Increase Domestic Energy Consumption
25 Apr 2022
4 min read

News Synopsis

After some nations rejected Russian oil, it can increase domestic energy consumption and amplify exports to new markets. Russian President Vladimir Putin said that although it sounds simple, it’s going to be a lot difficult in practice once the next wave of restrictions on Moscow’s oil trade kicks in. As of now, there has been little impact on the volume of crude oil flowing from Russia’s export terminals. While in the beginning, seaborne shipments declined after Russia’s invasion of Ukraine, there was no immediate collapse. Additionally, the rate of exports increased in the first week of April, as the storm in the Black Sea subsidies, led to a backlog of ships waiting to load at a key port.

However, the countries to which these ships sailed have been changed recently. There has been an increase in the number of ships heading to Asia from ports in the Black Sea, the Baltic, and even, in one case, from the Arctic port of Murmansk. Supplies of crude to Asian countries from Russia’s western ports have increased from zero in the weeks prior to the invasion to 875,000 barrels a day in the first week of April. 

TWN In-Focus