Energy Pivot: Russia Strengthens Oil and Gas Exports to the East

After a series of sanctions and problems with European purchases, in April Russia announced an increased reorientation of energy exports to Asia - China, India, and Turkey. Long-term contracts for the supply of oil and gas were signed, providing for settlements in yuan and rupees, rather than in dollars and euros. This decision became strategic: Russian companies were able to work in new currency pairs, which actually made it possible to bypass some of the Western sanctions. For the economy - a chance to maintain export earnings, for the budget - reliable foreign exchange earnings. As a result of April, the oil and gas markets perked up: prices for Russian “eastern” contracts were lower than pre-crisis prices for Europe, but despite this, they were stable. This helped soften the blow to the budget, payments and the economy, which is dependent on raw materials. For ordinary Russians, the effect was delayed: cheap gas is good, but it is not the same “cheap gas for the people.” And for business and industry, it is an opportunity to maintain the supply of raw materials, albeit under new rules. April 2023 has become a symbol of economic adaptation: Russia is trying to survive the crisis through reorientation, internal resilience and new connections.