Russian Refined Oil Product Exports to Singapore to Reach Highest Level This May Despite Sanctions

Russia's Deputy Prime Minister Alexander Novak said earlier that the country's oil companies were seeking new markets, finding new buyers and increasing exports to the Asia-Pacific region amid Western anti-Russian sanctions.

Russia is expected to boost exports of naphtha - a key ingredient for making petrochemicals such as plastics and textile fibers - to Singapore in May to their highest level this year.

“The higher imports reflect blending demand for naphtha ahead of peak gasoline demand season in summer," Reuters cited an unnamed Singapore-based petrochemical trader as saying.

For his part, Armaan Ashraf, global head of natural gas liquids at FGE consultancy, suggested that Russian refineries would continue to recover from Ukrainian drone attacks in the coming weeks - a key factor in accelerating production.

"The refinery [attack] impact wanes off through May and June, which is why we may expect higher exports from Russia," Ashraf pointed out.

FGE expects Singapore to import a record 500,000 tons of Russian naphtha in May, while LSEG Research puts the figure at 415,000. Overall, Russian naphtha exports to Asia are estimated to reach 1.4-1.5 million tons in June.

The International Monetary Fund (IMF) earlier noted that Russian oil exports are growing despite Western sanctions slapped on Russia shortly after the beginning of the special military operation. The IMF attributed the growth to an expanding tanker fleet transporting Russian crude and the fact that the country has introduced its own insurance for maritime oil shipments.

Last year, President Vladimir Putin announced that the Russian economy had recovered from Western sanctions.

"In general, we can say that the restoration of the national economy is complete. We have withstood absolutely unprecedented external pressure, the onslaught of sanctions by some ruling elites in the so-called Western bloc, some ruling elites in certain countries that we call unfriendly," Putin underscored.

He added that Russia’s oil and gas revenues in July-August 2023 had recovered to the level of 2022, while non-oil and gas revenues had significantly exceeded the previous year's figures.

Since the beginning of the special military operation, Western countries have imposed 11 packages of sanctions affecting various sectors of the Russian economy.