Russia has said it is eyeing Asia as a potential market for oil as Germany pledges to wean itself off supplies from Moscow.
Asia now appears to be a market of choice in the eyes of Moscow, a spokesman for Russian President Vladimir Putin having presented the continent as a potential new consumer of Russian oil.
It comes as German politicians urge the country to wean itself off Putin’s oil, with the country’s left-leaning economy minister saying it’s possible Russian oil imports could be halved by summer .
According to a report by The SpiegelRussia is now seeking new oil customers in Asia, with Southeast Asia in particular being mentioned as a prime location for potential demand.
OIL MARKET: Kremlin spokesman Dmitry Peskov told reporters in a daily conference call that Russia will be able to redirect crude oil not taken by European buyers to the Asia-Pacific market | #OOTT
— Javier Blas (@JavierBlas) March 28, 2022
“There is a market in Southeast Asia, in the East,” said Russian news agency TASS spokesman Dmitry Peskov. “Undoubtedly, falling oil offers will be offset by offers from this eastern direction.”
“But in any case, we repeat once again, after all, the global market is much more multifaceted than the European market alone,” Peskov continued. “Although, of course, the European market is top-notch”
This view was confirmed by an expert The Spiegel spoke, who claimed that there was a strong demand for Russian oil in China, although they also noted that getting the oil to the desired destination would not be an easy task.
“…if you look at how oil and gas are supposed to get there, it gets complicated,” noted economics researcher Paul Krugman, who said the fuel would likely have to travel thousands of miles and be transported by railcars -tanks to get to its destination.
The ongoing Russian invasion of Ukraine has had a significant impact on Italy, which uses gas for half of its energy needs and imports half of that gas from Russia https://t.co/8dADh1epii
— Breitbart London (@BreitbartLondres) March 26, 2022
As Russia seeks new markets for its oil, Germany finally appears to be committed to shedding its dependence on Russian oil.
Olaf Scholz, the country’s current left-wing chancellor, and Robert Habeck, the country’s economy ministry, have both verbally pledged to seriously cut oil imports from Putin’s Russia, with Habeck’s ministry saying that imports will be halved by the middle of the year. .
“Every effort, every kilowatt hour saved also helps and hurts Putin,” The Tagesspiegel reports the minister as saying regarding the sidewalk.
However, while Germany appears to be able to shake off its Russian oil habit in due course, its dependence on gas appears to be another matter altogether, with the country currently importing 55% of what it uses annually from the Federation. from Russia. .
Moreover, Moscow now demands that all “hostile” nations pay for Russian gas in rubles, which Germany – along with the rest of the G7 – has rejected.
However, Russia has threatened not to deliver gas “for free”, with the country’s finance minister expressing confidence that Western states will “adapt” to paying for gas in Russian currency.
“In our opinion, in the current difficult geopolitical conditions, the transition to local currency settlements is a reduction of risks in the exchange of goods, trade flows and settlements for them,” said Interfax, according to the Minister of Finance. Anton Siluanov. “Therefore, we believe that this decision is absolutely correct.”
“Our Western partners will adapt to this decision and understand that the ruble is not a less reliable currency than other reserve currencies,” he continued.