Russia's naphtha exports to Singapore nearly tripled in Q1 2023

Russia’s naphtha exports to Singapore almost tripled in the first quarter of 2023 following the Western sanctions on Moscow’s oil products.

The Asian country imported 741,000 metric tons of the Russian refined product in the first three months of this year, compared to 261,000 in the last quarter of 2022, Reuters reports with reference to Singapore’s government data.

Moscow increasingly turns toward the Asian markets as the EU instituted a ban on Russian sea-born oil in February and, in cooperation with Australia and G7, imposed a price cap on gas imports from Russia.

These sanctions aim at the Russian oil export profits which make up a significant part of the country’s GDP. The EU was the leading buyer of Russian oil until last year.

To offset the loss, Russia significantly increased its exports to China, India, and other Asian countries. For example, India bought a record 1,49 million barrels of naphtha in February, although it only rarely bought naphtha from Russia before the war.

Saudi Arabia and the United Arab Emirates also boosted their imports of Russian fuel oil to replace domestic crude, which can be then freed up for export.

The recent surprise decision by Saudi Arabia and other major oil states to cut production may also play into the Kremlin’s hands, as it will lead to an increase in oil prices.