For the first time in five years, Russia has sent a large shipment of its key Urals crude oil grade to Venezuela. The supertanker Ligera arrived near Venezuela’s Amuay Bay in late January, carrying at least 1.7 million barrels of Russian oil.
Experts believe Russia is turning to countries like Venezuela, considered “friendly” buyers, as tighter U.S. and European Union sanctions make it harder for Russia to export oil to major markets.
Img Credit: – Asharq Al-Awsat
In recent years, the EU purchased over half of Russia’s global oil exports. But bans on Russian oil shipments after the invasion of Ukraine forced Moscow to scramble for new customers mostly in Asia.
Data shows China now receives around 45-50% of total Russian oil export volumes. India has rapidly emerged as another top buyer, purchasing 40%. Prior to 2022, Russia sold almost no oil to India.
The shipment to Venezuela suggests Russia is exploring further afield as more sanctions loom. Recent U.S. threats to punish banks financing Russian oil deals appear to be chilling purchases even in India.
Venezuela’s own oil industry has struggled for years, leaving the country reliant on imported crudes to dilute and process its extra-heavy oil reserves into exportable varieties. Russia likely views Venezuela as a convenient outlet for its increasingly orphaned barrels.
The Ligera’s unusual journey highlights Russia’s efforts to bypass sanctions and maintain economic ties with countries at odds with the West. But experts say finding new markets further away will be logistically challenging and do little to offset revenue losses in Europe.
