Economic sanctions ‘tickle’ Russia: Its oil production and exports rose in March

Russia increased oil production and exports to its main foreign markets during the first half of March, even as buyers hesitated to deal with the nation after the Ukraine invasion.

The country’s producers pumped an average of 1.517 million tons of oil a day from March 1 to 15, 0.4 percent more than in February , according to industry data seen by Bloomberg, equivalent to 11.12 million barrels per day.

Russian crude exports to key foreign markets through pipelines and port facilities operated by Transneft PJSC in the first half of March averaged 597,300 tons per day, or 4.38 million barrels per day , according to early reports. In February, exports were down by almost 90 thousand tons per day, or about 660 thousand barrels per day.

Russian producers are having little difficulty marketing their oil amid calls to stop funding the military invasion of Ukraine by rejecting the country’s energy exports. Until now, only a few governments, including the United States and the United Kingdom , have outright banned imports of Russian oil.

March planning for Russian Urals crude cargoes from two key Baltic Sea ports was revised downward, according to information from port brokers. If buyers continue to avoid Russian shipments and no alternative markets emerge, the country’s producers could be forced to reduce extraction rates in the coming weeks and months .

The so-called self-sanction could see Russia’s output plunge by about 3 million barrels a day in April , the International Energy Agency said on Wednesday.

Russia survived Western economic sanctions: Putin

This week, President Vladimir Putin claimed that Russia survived the ” economic blitzkrieg ” of international sanctions over the war against Ukraine.

However, he admitted that his country faces rising unemployment and inflation as Russia adjusts to economic and trade blockades imposed by the United States, Europe and NATO.