Russia's oil exports are falling rapidly

15:53 23 January Kyiv, Ukraine

Exports of Russian crude oil by sea fell after a sharp rise in the previous seven days, marking the smallest inflow into the Kremlin's military coffers since Moscow sent its troops to Ukraine.

Cumulative volumes of Russian oil fell 820,000 barrels a day, or 22%, to 2.98 million for the week, losing much of the previous week's gain. The largest drop was in flows from Pacific ports, with smaller declines in exports from the Arctic and the Black Sea.

Flows to Bulgaria, currently Russia's only Black Sea oil market, have fallen to their lowest level since August, falling to 125,000 barrels per day..

According to the material, the Kremlin's revenue from export duties on crude oil fell sharply along with a drop in weekly flows. The revised formula, introduced in early 2023, halved the rate of duty per barrel, which, combined with the fall in flows, has reduced revenue to its lowest level since the pre-war period on both the weekly and four-week average. Moscow is considering changing how oil taxes are calculated to boost revenue.