**Russia’s Oil Exports Hit Lowest Level Since February**
Russia’s crude oil shipments have reached their lowest level in months, with refinery processing outpacing production growth and reducing available export volumes. According to a report by Bloomberg on July 8, seaborne crude flows averaged 3.12 million barrels per day over the four weeks to July 6, a decline of 3% from the previous period ending June 29.
This drop in oil exports is significant because Russia has heavily relied on energy revenues to finance its ongoing war with Ukraine. The country’s oil industry has been a crucial source of income for Moscow, and any decrease in export volumes can have a substantial impact on the government’s ability to fund military operations.
Despite the decline in overall oil exports, the gross value of Russia’s oil shipments actually increased by about $100 million, or 8%, to $1.36 billion for the week ending July 6. This may seem counterintuitive, but it’s due to higher export volumes rather than a significant increase in prices.
**Most Oil Headed to Asia**
Interestingly, most of Russia’s oil continues to be exported to Asian countries. Shipments to this region averaged 2.73 million barrels per day, slightly lower than the previous month. In contrast, flows to Turkey fell to 370,000 barrels a day, while shipments to Syria remained steady at 25,000 barrels per day.
**EU Tightens Sanctions**
The European Union is taking steps to tighten sanctions on Russia in response to its ongoing military actions in Ukraine. However, the bloc’s efforts have been hindered by opposition from Hungary and Slovakia, which has delayed the adoption of a new sanctions package. The EU’s 18th sanctions package aims to target Russia’s energy and banking sectors, as well as transactions linked to the Nord Stream gas pipeline.
**What Does This Mean?**
The decline in Russia’s oil exports is a significant development that can have far-reaching consequences for Moscow’s economy and its ability to fund military operations. The EU’s efforts to tighten sanctions on Russia are also noteworthy, as they reflect the bloc’s growing concern about the country’s actions in Ukraine.
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