Russia Monitor Articles
Trafigura Sells Stake In Indian Refinery
Trafigura has sold its stake in an Indian oil refinery joint venture with Russia’s Rosneft. Earlier, Trafigura had sold its stake in Russia’s giant Vostok Oil project. Meanwhile, it continues to take European assets of Russian oil companies.
More Gas to China Unlikely to Offset EU Direction
Russia’s gas giant Gazprom has set a new historical record for the daily export of Russian gas to China. Yet its price is lower than that for the EU, with the supply volume being incomparable, too. Moscow is setting eyes on increasing gas flows to China via a new pipeline – yet Turkmenistan and China have just agreed to launch a new link to boost gas supplies.
Claims of High Oil and Gas Revenues Are Just Russian Propaganda
Russian Deputy Prime Minister Alexander Novak reviewed the performance of the country’s top energy sector in 2022. Moscow has prided itself on its oil and gas revenues that rose by a third from 2021. The thing is the 2022 figures do not include bad results that surfaced in late 2022 and tendencies notched up in January 2023. As Russian oil and gas prices are being affected, federal budget revenues are likely to shrink.
Russia’s Claim to Seize Ukraine’s Soledar Reveals Rifts Between Prigozhin, Shoigu
Russia’s Defense Ministry said in a statement that its troops had taken control of the town, Soledar but made no mention of the Kremlin-affiliated Wagner private military company, marking a years-long clash between these two. When on January 13 Russian forces claimed that Soledar had fallen to its fighters, pointedly saying that the Wagner mercenary group was not involved. After the statement from Yevgeny Prigozhin, the owner of the private military company, the Russian defense ministry had issued a rare sign of recognition for Wagner Group. Yet Prigozhin has not won the quarrel with the defense ministry.
France’s GTT Ceases Its Activities in Russia
French engineering group Gaztransport & Technigaz (GTT) said it was stopping its activities in Russia after analyzing the latest European sanction packages that include a ban on engineering services with Russian firms.
Russia’s Lukoil Seeks to Sell Assets in Romania, Moldova Amid EU Sanctions
As reported, Russian energy company Lukoil could sell its businesses in Romania and Moldova amid a new package of sanctions the EU introduced back in early December 2022.
India Rushes to Buy Russian Oil
Russia has for the first time emerged as a top oil supplier to India replacing Iraq. as refiners last month snapped up oil from Moscow in October and November fearing the December 5 price cap. India will prioritize its own energy needs and continue to buy oil from Russia. India announced last week that it would not comply with the price cap on Russian seaborne oil imposed by Western nations.
China Supports Russia Through Joint Drills and Top Beijing Meeting
Although Beijing has not thrown any official support to Russia in its war with Ukraine, its authorities back Moscow unofficially. One example of that is meetings between top state officials and joint navy drills.
Putin Pledges Reinforcements To Country’s Western Flank
Russian President Vladimir Putin attended an expanded meeting of the Russian Defense Ministry Board. The Russian leader made some remarks on what he referred to as the “special military operation” in Ukraine, but what Defense Minister Sergei Shoigu told the meeting seemed more far-reaching. He publicly presented a series of proposed Russian defense policy changes to significantly increase the size of the Russian military by raising the age limit for conscripts and forming a new military unit near the border with Finland, a prospective NATO member.
Gazprom Opens New Arctic Field Despite Shrinking Export
Russian gas giant Gazprom was forced to reduce its export volumes due to the war and sanctions. Despite that, it opened a new Arctic field. A major problem is rebuilding infrastructure to redirect gas flows from the Gulf of Ob to China from Europe.
Moldova Is Becoming Independent of Russian Gas Flows
Moldova has imported natural gas from new directions, for the first time obtaining volumes pumped from elsewhere than Russian state-run gas firm Gazprom. The pro-Western government in Chisinau is seeking to diversify its energy resources and accumulate supplies against the background of Gazprom’s policy that consists in using gas as a tool of blackmail.
Russian Economy Is Now in Far Better State than Expected
The Russian economy has somewhat performed well throughout 2022 and experienced the aftermath of energy sanctions only in November. Officials and analysts have been gradually improving GDP forecasts for the full year, but suggested that the overall drop in output may be more prolonged. Gross domestic product fell 0.9 percent, according to September estimates, but now it could be 2 percent. The key story for the Russian economy in the coming months could be the launch of the EU’s oil embargo mechanism from Dec. 5 and the imposition of a price cap on Russian oil.
Gazprom, Rosneft Employees Banned from Leaving Russia
Employees of Russian state-run oil and gas companies have been banned from leaving the country, according to independent Russian media outlets. Gazprom employees have seen the strictest ban as neither they nor their families are allowed to travel abroad. It is another chapter of Russia’s wartime communism strategy that seeks to align the state economy with its war machine. Likewise, the authorities hope to prevent senior energy officials from fleeing the country.
Russia’s State Duma Passes New Shocking Bill on Sabotage
Putin’s regime has continued its crackdown on citizens by introducing tighter laws on sabotage. Russia’s State Duma, which is the lower house of the Russian parliament, has submitted a pile of bills on the country’s war with Ukraine. On the one hand, Russia is tightening penalties for sabotage while seeking to waive criminal liability for crimes committed in Russian-controlled areas of Ukraine until late September on the other.
Warsaw Institute
