Russia's oil exports still strong despite sanctions: Report

Oil drums

Russia's exports of crude and oil products reached 7.32 million barrels per day (bpd) in February, which implies that sanctions on shipping crude by sea and the cap-and-trade mechanism imposed by the West on Moscow have yet to bear fruit.

According to the data published by commodity research company Kpler, the exports recorded last month was almost similar to that in December 2022, immediately after the entry into force of Western oil sanctions.

However, Kpler noted that December 2022 exports were hurt by weather disruptions, forcing Russian exporters to postpone some shipments to January. Accordingly, February exports fell back to December levels.

Weather changes also restricted the amount of crude oil Russia was able to export in the past month, as the Novorossiysk port was repeatedly closed, company analyst Victor Katona told Bloomberg.

Data from the Institute of International Finance, Columbia University and the University of California revealed that Russia received more money in the weeks after capping oil prices at $60 a barrel than was allowed.

On average, data showed that Russia sold its crude oil for $74 a barrel in the four weeks following the imposition of the price cap on Dec. 5, 2022.