MOSCOW, October 18. /TASS/. In 2023, Russia increased the share of its oil exports to two BRICS partners - India and China - to 78% against 32% in 2021, according to the report "BRICS+ Energy: Engine of the New World Order" of the Valdai International Discussion Club, authored by Deputy Head of the National Energy Security Fund Alexey Grivach. At the same time, the BRICS countries have yet to create a system of payment for energy resources that will not be vulnerable to US sanctions.
"When the G7 countries decided to crush the Russian economy and energy sector with sanctions, alternative trade mechanisms, including transportation, insurance and payments for energy had to be created in a hurry and practically from scratch. Oil supplies from Russia to India in 2023 increased 18 times compared to 2021 from 4.5 mln tons to 82 mln tons, and to China - by a third from 80 mln tons to 107 mln tons. As a result, 78% of Russian crude oil exports went to these two BRICS partners, whereas in 2021 their share was 32%," the report said.
At the same time, supplies of oil products from India and China to Europe tripled from 12 mln tons to 36 mln tons, the report noted.
In addition, the process of changing the payment system has made significant progress, affecting not only payments for Russian energy resources, "which were pushed out of the US and European financial systems by sanctions," but also other exporters. Thus, Saudi Arabia did not renew the fifty-year agreement with the US on oil trade exclusively for US dollars, which expired this year.
"At the same time, trial agreements were concluded on the sale of Saudi oil to China for yuan, which underscores the need to institutionalize and systematize work on creating a sustainable system of payments and energy trade servicing within the BRICS, which will not be vulnerable to threats of unilateral sanctions or other unfriendly steps by the US and its satellites in the group of developed countries," the author of the report concluded.
In the spring, Russian Deputy Prime Minister Alexander Novak reported that the countries of the Asia-Pacific region became one of the main destinations for Russian hydrocarbon supplies in 2023. In total, 80% of Russian oil exports and 35% of oil product exports were delivered to this region last year.
BRICS was founded in 2006 by Brazil, Russia, India and China, with South Africa joining it in 2011. On January 1, 2024, Egypt, Iran, the United Arab Emirates, Saudi Arabia and Ethiopia became the group’s full members. On January 1, 2024, Russia took over the BRICS’ yearlong presidency. It features more than 200 various events. The BRICS summit in Kazan on October 22-24 will be the association’s main event during Russia’s presidency.