Russian oil exports fall by 11pc, Rouble plunges to its weakest level since May
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Russian oil exports fall by 11pc, Rouble plunges to its weakest level since May
MOSCOW (REUTERS) - Russian oil exports fell by 11% for Dec. 1-20 compared to the previous month, after the European Union’s embargo on Russian oil came into force, the Kommersant daily reported on Wednesday, citing unidentified sources familiar with the situation.
Russia’s exports to non-CIS countries - covering both pipeline and sea-borne shipments - totalled around 560,000 tonnes per day during the period, Kommersant reported.
The EU’s embargo on Russian oil purchases came into effect on Dec. 5 in a move Brussels says will cut the bloc’s imports of Russian oil by 90%.
Before Russia sent tens of thousands of troops into Ukraine in February, Europe bought around half of all Russia’s oil exports.
Moscow, which calls its action in Ukraine “a special military operation”, has rapidly shifted its energy trade eastwards this year, selling record volumes to countries like India and China.
The Kremlin hopes sustained demand from countries in Asia can compensate for lost supplies to Russia’s traditional European customers.
The EU, the G7 and Australia have also imposed a price cap on Russian oil to further thwart Moscow’s key source of revenue, banning firms from providing insurance or logistics for Russian sea-borne oil shipments where the price paid is above $60 a barrel.
Russia has promised retaliatory measures that could include a ban on selling oil to any company that complies with the oil price cap.
On other hand, the rouble plunged to its weakest level since early May past 70 against the dollar in early trade on Wednesday, extending weekly losses with fears over sanctions on Russian oil and gas spooking the market.
At 0608 GMT, the rouble was down 1.9% against the dollar at 70.20, after hitting 70.6775 earlier.
It had lost 1.4% to trade at 74.50 versus the euro, earlier crossing the 75 threshold for the first time since late April.
It had shed 1.6% against the yuan to 10.05, a near seven-month low.
The rouble has already lost more than 7% this week against the greenback, hampered by fears that an oil price cap and embargo will reduce Russia’s export revenues.
“The rouble has been catching down to the weakening of Russia’s balance of payments,” said Rachel Ziemba, founder of Ziemba Insights.
“In recent months Russian export revenues have fallen as it sharply reduced gas exports and the EU oil embargo is limiting oil revenues.” Brent crude oil, a global benchmark for Russia’s main export, was up 0.3% at $80.2 a barrel.
Russian rouble tumbles past 65 vs dollar, weakest since May
The rouble remains the world’s best-performing currency this year, supported by capital controls and an initial collapse in imports as a result of Western sanctions over Russia’s actions in Ukraine.
