The key facts

  • The first tanker with Russian oil has been dispatched from the port of Dixon, Novak said
  • The market is experiencing a deficit of about 4–6 million barrels per day, according to Novak's estimate
  • Russia expects to supply China with 39 billion cubic meters of gas; there is an agreement to expand to 44 billion

First tanker dispatched

Deputy Prime Minister of Russia Alexander Novak, speaking on the Solovyov Live talk show, said that the first tanker with Russian oil has been loaded and dispatched from the port of Dixon — an Arctic seaport on the coast of the Kara Sea in Krasnoyarsk Krai. According to him, Moscow has 'no problems' selling oil, and many countries are interested in buying it.

Context of the deal with the US

On October 9, US President Donald Trump presented an agreement on diesel fuel supplies following a phone call with Russian President Vladimir Putin, under which Moscow agreed to supply fuel to the US market and global markets. Putin said that Russian diesel supplies would benefit the global economy, while Ukrainian President Volodymyr Zelensky criticized the deal, warning that easing restrictions on Russian diesel exports could finance Russia's military efforts.

State of the market

Novak estimated the current deficit in the oil market at approximately 4–6 million barrels per day, which, according to him, has pushed prices up. He noted that prices remain high and will rise even further if the situation in the Strait of Hormuz does not improve. If supplies from Persian Gulf countries resume, the market, in his view, will balance out within a year to a year and a half. The possibility of using reserves to stabilize the global market, the deputy prime minister believes, 'is already being exhausted'.

Gas supplies

Russia expects to supply China with 39 billion cubic meters of gas via the Power of Siberia pipeline; there is also an agreement to expand supply capacity to 44 billion cubic meters. The technical possibility of restoring gas supplies to Europe via Nord Stream, according to Novak, remains 'if decisions are made regarding the damaged pipelines'. He stated that three of the four strings are not operational 'as a result of terrorist attacks and explosions', one remains intact, and supplies through it are possible, but this depends on consumers — the European partners.