Russian oil industry - statistics & facts
Russia is the third-largest producer of oil worldwide, accounting for over 12 percent of global crude oil production. Rich in natural resources, the country concentrates its energy production in the West Siberia and Volga-Ural oil and gas provinces. The oil industry was privatized after the collapse of the Soviet Union, but largely moved under government control in the middle of the 2000s. The country's economy is strongly dependent on energy exports. Russia is the fourth-largest oil-exporting region, having supplied eight million barrels daily in 2022.
G7 countries imposed a price cap on Russian crude oil and petroleum products and banned their tankers from transporting Russian oil to third countries if it was sold for the price above the cap. As a result of the restrictions, Russia's share in extra-EU petroleum oil imports decreased from approximately 30 percent in the first quarter of 2022 to less than three percent in the first three months of 2024. Germany has imported no crude oil from Russia in 2024.
Faced with Western import bans and price limits, the Russian oil industry has shifted its exports to non-sanctioning countries. As a result, daily crude oil and refined products' exports did not experience a drastic decline in 2023 and 2024.
Western dependence on Russian oil
In response to Russia's invasion of Ukraine in February 2022, Western countries sanctioned Russia by restricting imports of its fossil fuels. For instance, the United States completely banned oil imports from Russia, while members of the European Union (EU) prohibited seaborne oil shipments. Before the war, crude oil and refined products were the leading import commodities of the United States from Russia. Overall, Russia used to be the third-leading import origin of petroleum in the United States. Among EU countries, Germany and Poland used to be the largest importers. Since the invasion, China, India, and Turkey have been the main buyers of Russian oil.G7 countries imposed a price cap on Russian crude oil and petroleum products and banned their tankers from transporting Russian oil to third countries if it was sold for the price above the cap. As a result of the restrictions, Russia's share in extra-EU petroleum oil imports decreased from approximately 30 percent in the first quarter of 2022 to less than three percent in the first three months of 2024. Germany has imported no crude oil from Russia in 2024.
Oil companies in Russia
Russian oil producers Rosneft and Lukoil are among the leading energy companies in the country. The controlling stake of Rosneft, the major oil producer, belongs to Rosneftegaz, which is fully owned by the Russian government. Rosneft purchased the shares of Yukos, which once was the industry's key player, but went bankrupt. Oil companies in Russia have influence over other industries; for example, Surgutneftegas owns shares in the private holding National Media Group that operates TV channels, film studios, print media, and advertising agencies.Faced with Western import bans and price limits, the Russian oil industry has shifted its exports to non-sanctioning countries. As a result, daily crude oil and refined products' exports did not experience a drastic decline in 2023 and 2024.
