Page 116 - RusRPTNov23

billion rubles ($4-5 billion) from the federal budget before the end of this year.
Earlier, the government tried to reduce soaring domestic fuel prices by
introducing export bans. However, this led to overstocking, prices did not drop
as quickly as the government expected them to, and some regions
continuedto experience
The discount on Russian oil has decreased three-fold since the beginning of 2023 to $11-12 per barrel due to stabilisation of supplies and strong competition for it on the global market, Deputy Prime Minister Alexander Novak said on OCtober 13. A decrease in discount demonstrates mitigation of risks related to supplies of Russian oil, Novak added. "If competition is strong all want cheap oil and petroleum products, the demand is high, which means the discount may decrease. We will be monitoring it. We are optimistic about that," he said. Russia has considerably reduced the share of trade in oil and petroleum products in dollars and euro, having largely shifted to rubles, yuan, rupees and so on, Russian Deputy PM stressed. "Payments in dollars and euro remain as well, though much lower than previously. The main thing is that we have got to payment instruments and mechanisms that enable us to ensure supplies to regions where our products are demanded, at current market prices," he explained.
Moscow still receives huge revenues from energy exports despite restrictions from the West. Russia is still selling its oil at much higher prices than the $60 per barrel mandated by the G7 countries due to strong demand from China and India, Politico writes.
It is noted that the West's attempts to disrupt the Kremlin's war against Ukraine by limiting oil prices have failed. Hopes that Moscow will run out of money for weapons and salaries for soldiers are evaporating.
Russia's main oil brand, Urals, exceeded G7 limits in June and reached $80 per barrel. It is currently trading at about $75 per barrel.
"This means that Putin will be able to continue the war longer. High revenues from the sale of oil allow Moscow to buy more weapons and support the civilian economy," the publication notes.
Russia is also selling more oil in physical terms, with seaborne exports rising 10% to 3.37mn barrels a day last month, well above the pre-war average of 3.1mn barrels.
Russia expects oil demand to grow by 2.4mn barrels per day to a record level in 2023, Russian Deputy Prime Minister Alexander Novak said on October 12, adding that global oil consumption will go up further on and reach up to 118mn barrels per day in 2030.
"We observe an increase in demand, which will hit a fresh all-time high this year excluding 2020 at the recovery point. We expect oil demand to grow by 2.4mn barrels per day. Experts suggest that it will continue as total oil consumption will equal 116-118mn barrels per day in 2030," he said at the Russian Energy Week.
price hikes or shortages. This ban will also be lifted
for producers that sell at least half of their production domestically.
116 RUSSIA Country Report November 2023 www.intellinews.com