Russia is shipping more oil to Asia as it looks to counter the impact of EU sanctions.
Last Monday, the EU agreed on a Russian oil ban that stands to cut about 90% of Russian oil imports to the bloc by the end of the year. But demand from China and India is robust, as Russia discounts its oil prices amid sweeping sanctions over the war in Ukraine.
To meet Asian demand, Russia has increased shipments by about 20% out of the major port of Kozmino, near Vladivostok in the east of the country, Reuters reported on Tuesday, citing three sources familiar with the matter.
The exports from the port are pumped via the East Siberia Pacific Ocean (ESPO) pipeline operated by Transneft. The Russian pipeline company has increased the amount of crude oil pumped to Kozmino by 70,000 barrels a day, Reuters reported. On top of the piped oil, Russia also plans to send an additional 80,000 barrels of crude oil a day via rail to Kozmino from Siberia.
Transneft did not respond immediately to Insider's request for comment sent outside regular business hours.
Much of the oil is headed to China and India, neither of which has condemned Russia's actions in Ukraine. Beijing has criticized sanctions against Russia.
A shorter supply line to the energy-hungry asian markets would drive down export costs even further and ensure Russian oil remain attractive to buyers in the region.
