German Media: Kremlin: Countries Around the World Are Queuing Up to Buy Russian Energy

As the global energy crisis shakes market foundations, the Kremlin stated on Tuesday that demand for Russian energy has surged. Due to the U.S.-Israel war against Iran and the blockade of the Strait of Hormuz, oil stockpiles have accumulated, pushing up global oil prices. As a major raw materials country, Russia is capitalizing on soaring energy prices by utilizing alternative shipping routes to bypass the blockade, becoming a primary beneficiary of this new Middle East conflict.

At a time when European consumers are trying to end their reliance on Russian energy as punishment for Moscow’s invasion of Ukraine, Russia itself faces production cuts due to Ukrainian attacks on its oil infrastructure. Previously, Russian President Vladimir Putin suggested that if European customers no longer need Russian energy, they should more swiftly redirect their supplies to other regions.

Kremlin spokesperson Dmitry Peskov told journalists: "As the world becomes increasingly convinced that we are entering an escalating economic and energy crisis, market conditions in energy and resources have undergone a fundamental shift. The number of purchase requests from other channels is enormous. We are currently engaged in negotiations to ensure the final arrangement best serves our interests."

The "Historic Windfall" Under the Hormuz Blockade

According to calculations by the German-Russian Chamber of Commerce (AHK), due to the de facto closure of the Strait of Hormuz, Russia—being a major raw materials nation—is reaping substantial additional gains from rising energy prices. The chamber notes that Russia earns over €10 billion per month from exporting oil, gas, and fertilizers.

Matthias Schepp, president of the German-Russian Chamber of Commerce, told Deutsche Presse-Agentur that Russia has become the big winner in this new Middle East war. Moscow is benefiting from the global surge in raw material prices and leveraging alternative export routes to circumvent the blockade. Schepp believes all this could bring Russia a "historic-scale windfall."

Data shows that even with oil prices holding around $100 per barrel, Russia’s annual budget revenue would increase by $71.8 billion compared to original projections. Early this week, the price of June-delivered Brent crude from the North Sea rose above $111 per barrel—nearly $40 higher than pre-war levels.

At current price levels, just from oil and gas, Moscow could generate approximately $50 billion in additional annual income. This revenue not only helps Russia withstand Western sanctions but also strengthens its financial resilience.

Shifting Toward Eastern Markets

Last month, Reuters reported that Asian countries—including Vietnam, Thailand, the Philippines, Indonesia, and Sri Lanka—are queuing up to buy Russian oil as supply disruptions caused by the Iran war intensify, increasing the risk of demand outpacing supply.

This surge in demand is reflected in pricing: last month, Russian Urals crude traded at a premium of $5 to $8 per barrel over Brent crude—unlike the usual discount seen under normal circumstances.

As the world’s second-largest oil exporter after Saudi Arabia, Russia produces about 10 million barrels of crude daily, with roughly half exported. However, according to a Reuters report last week, Ukrainian attacks on ports, pipelines, and refineries have reduced Russia’s export capacity by 1 million barrels per day—about one-fifth of its total capability. Consequently, Russia may actually be forced to cut production.

Beyond oil, Russia is also redirecting liquefied natural gas (LNG) exports to other markets. Data from London Stock Exchange Group (LSEG) on Tuesday showed that Yamal LNG, controlled by Russia’s largest LNG producer Novatek, has shipped its first cargo to China since November last year. In a few weeks, Europe’s ban on importing Russian LNG will gradually come into effect.

The project is located on the Yamal Peninsula in the Arctic and was previously mainly exporting LNG to Europe. Last month, Putin said that given the EU’s decision to ban imports of Russian pipeline gas by the end of 2027, and the new temporary ban on short-term LNG contracts with Russia set to take effect on April 25 this year, Russia can now redirect its gas exports from the European market to other countries.

Germany's Industry Faces a "Cost Shock"

Rising energy prices have also imposed a heavy burden on Germany. Calculations by the German-Russian Chamber of Commerce suggest that if oil prices remain at $100 per barrel, Germany’s oil import bill could soar above €60 billion.

Energy expert Thomas Baier from the chamber warned that, combined with added gas costs, German industry faces a cost shock that could derail expectations of economic recovery in 2026. In the fertilizer sector, Russia could earn up to €8.9 billion in additional revenue under moderate supply shortages. By contrast, German agricultural businesses would face extra costs of €36 to €145 per hectare annually.

Recently, Putin stated that Russia will prioritize supplying oil and gas to “loyal partners,” including countries in Asia-Pacific and Eastern European nations such as Hungary and Slovakia. While he claimed willingness to cooperate with European companies willing to sign long-term contracts, there are currently no signs that the EU will ease sanctions. Meanwhile, Ukraine has warned that increased funding for Moscow could lead to a more brutal escalation of the war.

Source: DW

Original Article: toutiao.com/article/1861826398286848/

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