Page 38 - RusRPTFeb23

Lack of export possibilities also hit certain other industrial branches in November. For example, wood processing was down by 21% y/y and production of natural gas (excluding LNG) by 16% y/y.
Russia’s overall economic development continued to be supported by the all-important oil industry. Oil production rose in January-November by 2% y/y. A large share of production goes to exports. The volume of Russian crude oil exports only began to shrink in the final months of last year. While the EU’s ban on imports of Russian crude oil took effect in December, the import ban on petroleum products only enters into force at the beginning of February. Russia sought out new oil export markets last year, most notably India.
The outlook is bleak as the Russian economy enters 2023 in recession, and recent key forecasts see Russian GDP contracting by 3–4% this year. Exports should decline sharply as sanctions begin to bite.
38 RUSSIA Country Report February 2023 www.intellinews.com