Russia says it’s ready to sell oil to ‘friendly countries’ in ‘any price range’

• The Russian energy industry is facing challenges due to boycotts and sanctions over the Ukraine war.
• Russia is ready to sell oil to “friendly countries” in “any price range,” the country’s energy minister said.
• India and China have been buying cargoes of cheap Russian oil.

Russian energy minister Nikolai Shulginov said the country is ready to sell oil and oil products to “friendly countries” in “any price range,” the Izvestia newspaper reported on Wednesday.

Shulginov was speaking to the pro-Kremlin outlet about the state of the Russian oil and gas industry, which is facing challenges due to boycotts and sanctions over the country’s invasion of Ukraine.

He told the outlet crude oil prices could reach $80 to $150 a barrel in principle, although Russia was more focussed on ensuring the functioning of the oil industry. International benchmark Brent crude oil hit nearly $140 a barrel last month and has since come off to around $100 a barrel as of Wednesday.

Shulginov didn’t specify which “friendly countries” he was referring to, but India and China have been buying cargoes of cheap Russian oil. Neither country has overtly condemned Russia for its invasion of Ukraine.

India, the world’s third-largest consumer of oil, purchased about 12 million barrels from Russia last year, making up only 2% of its total imports.

Meanwhile, China’s large state oil refineries are not signing new Russian oil contracts, although smaller independent refiners are still buying Russian oil discreetly, Reuters report last week.

Russia is an energy powerhouse, so even amid sanctions and boycotts, the country will still reap nearly $321 million from its energy exports in 2022 — 36% more than in 2021, Bloomberg Economics forecast in April.  

Even so, the Russian economy is expected to contract 11.2% in 2022, the World Bank said in a report released Sunday. The country’s March oil and gas revenue was also 38% lower than Russia’s finance ministry had forecast on March 3, according to data from the ministry, published Tuesday.