The Russian Federation is under pressure due to a critical shortage of oil storage capacity, caused by issues with exporting “black gold” to India. As a result, the aggressor country is forced to reduce oil production, which may decrease by approximately 300,000 barrels per day by March-April.
This is reported by Finway
Decline in Exports and Overloaded Tankers
Until recently, India remained the main buyer of Russian Urals crude oil, importing an average of 1.7 million barrels per day in 2025. However, in January, purchase volumes plummeted by a third—to 1.1 million barrels per day. Against this backdrop, oil tankers with nearly 150 million barrels of Russian oil are stranded at sea, waiting to be unloaded.
Total oil exports from Russia decreased from 3.4 million barrels per day in January to 2.8 million in February. Meanwhile, oil storage facilities in Russia can only hold 32 million barrels—enough for 3-4 days of current production. It is estimated that they are already half full. An additional 100 million barrels can be accommodated in Transneft pipelines, which provide storage for approximately 11 days of production.
Financial Losses and Decreased Budget Revenues
Production cuts have already become a reality: in December, it decreased by 100,000 barrels per day, and in January—by another 26,000. Today, daily production stands at 9.28 million barrels, which is 300,000 less than the OPEC+ quota.
Last year, production in Russia fell to its lowest level in 15 years—512 million tons. Oil and gas companies lost about $33 billion in foreign currency revenues, as they were forced to offer discounts of up to $30 per barrel.
The main export grade from Moscow, Urals, is priced at $40 per barrel. Meanwhile, its budgeted price is set at $59, and to avoid a deficit, even higher prices are needed—an astronomical $93 per barrel.
The total revenue from the oil and gas sector in Russia in January amounted to $5.12 billion, which is half compared to the same period in 2024. This trend underscores the deepening financial problems of the Russian economy amid falling export revenues and declining market prices for oil.