In July, Russian seaborne exports of heating fuel oil and vacuum gas oil (VGO) to Asia reached 4.05 million tonnes, up 7% from the previous month.
The increase was due to the restart of operations at Russian refineries after seasonal maintenance.
Since the EU embargo in February 2023, Russia has been redirecting its exports to more receptive Asian markets, particularly China and Saudi Arabia. China, a major importer, saw its purchases of Russian fuel oil and VGO increase by 18% to 700,000 tonnes in July.
This fuel oil is primarily used in the refining process, often in combination with Urals crude, allowing Beijing to optimize its production capacity.
Demand Increases in Saudi Arabia
Saudi Arabia doubled its imports of Russian fuel oil to 700,000 tonnes in July.
The increase is in response to increased demand for electricity during the summer months, when energy demand increases.
Russia's fuel oil is primarily used to generate electricity and is essential to meet high consumption during this time of year.
The development of Russian exports is not limited to these two countries.
Imports to South Korea, Turkey and the United Arab Emirates are also rising, while India cut purchases by 7% in July, though that could reflect a temporary adjustment or a reassessment of supply sources.
The strategic reorientation of Russian exports to Asia signals an adaptation of global energy flows in the face of Western sanctions, with the region becoming increasingly dependent on Russian energy products.
