Alternative markets are becoming increasingly important for Russia

Russia, after the introduction of sanctions, seeks to radically change international trade routes, accelerating the development of alternative routes as the Northern Sea Route and the North-South Corridor.

While Western countries close their markets, especially energy, for the Russian state and companies because of the war in Ukraine, alternative markets are becoming increasingly important for Russia in foreign trade.

Especially in the energy trading, Russia and India exports has grown significantly, and interest in the Middle East, Latin America and Africa countries increases.

Russian oil exports to India in the first 5 months of this year increased from 3.4 million tons to 37 million tons compared with the same period last year, and oil exports to China increased from 41 million in the first 7 months of this year T to 52.6 million tons compared to the previous year.

The largest trading partner of Russia in the Middle East was the United Arab Emirates (UAE), the volume of trade with which in 2022 amounted to 9 billion US dollars, increasing by 68% compared to the previous year. Despite the fact that the UAE is one of the world’s largest oil producers, it should be noted that in 2022 the UAE was imported about 3.2 million barrels of Russian oil.

African countries, which are distinguished by a rapidly growing dynamic population, gradually increase their significance in the Russian market, especially in the field of agricultural products.

Russian President Vladimir Putin on August 22 stated that, despite the sanctions, last year Russia sent 11.5 million tons of grain to Africa, and in the first half of this year – about 10 million tons.

– the meaning of the Northern Sea Route is rapidly increasing

by shifting targeted export markets from Europe to other regions of the world, Russia activates efforts to develop alternative routes for transporting its products.

The Northern Sea Route, which is called the “alternative to the Suez Canal” in Russia, is distinguished among alternative routes by the greatest value given by the Russian government.

If in 2014 4 million tons of cargo were transported by Severomorput, then last year this volume increased to 34 million tons. The Government of the Russian Federation sets the task by 2030 to increase the volume of cargo transportation along the Northern Sea Route to more than 100 million tons.

In the News of the Russian newspaper Kommersant, it was said that the largest oil companies in the countries of Rosneft and Gazprom Neft in July-August also sent three oil vessels to China through the Baltic Sea using the North Sea Route.

– an alternative route to the south: Corridor “Sever-yug”

Recently, Russia has activated its efforts to create the North-South corridor.

North-South corridor is designed to reduce the time of transportation of goods following India to Russia or Europe.