How to avoid swinging prices

Sergey Kondratiev, Principal Director on Economic Studies at the Institute for Energy and Finance, wrote a column for the Infotech magazine about the cost of transporting Russian oil.

Over the past year, the Russian oil sector has faced the most serious challenges in foreign markets in the last 30 years. Oil companies had to look for new markets outside Europe, change logistics and payment schemes for oil and petroleum products, purchase tankers and establish parallel imports of necessary materials and equipment. One of the key tasks was to ensure stable transportation of raw materials to new markets – China and India. Prior to that, China was mainly supplied by a mixture of ESPO from Kozmino, and other grades of oil produced in the Far East, and India accounted for less than 1% of Russian oil exports. The restrictions imposed by the EU and the USA have led to the fact that now over 90% of all Russian exports account for India and China.