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<p>In 2023, 78 % of Russian crude oil exports were directed towards two Asian giants: India and China. A radical redistribution that contrasts sharply with the 2021 situation, where these two nations only absorbed 32 % of the Russian energy flows. In the face of Western sanctions aimed at crippling its energy sector, Russia is reinventing its trade routes with its BRICS partners. This strategic realignment on the Asian axis reflects a major shift in the global energy dynamics, prompting the BRICS bloc to accelerate its efforts to detach from the Western-dominated financial system.</p>
<h2 id="h-russia-strengthens-its-energy-ties-with-india-and-china">Russia strengthens its energy ties with India and China</h2>
<p>Russia drastically redirected its oil exports in 2023, in direct response to the sanctions imposed by the G7 countries. According to a report by the Valdai International Discussion Club, 78 % of Russian oil exports are now directed towards India and China, both members of the <a href="https://www.cointribune.com/lhistoire-des-brics/" target="_blank" rel="noopener noreferrer nofollow">BRICS</a> alliance, compared to only 32 % in 2021. “When the G7 countries decided to crush the Russian economy and its energy sector with sanctions, alternative trade mechanisms had to be created urgently,” <a href="https://tass.com/economy/1857853" target="_blank" rel="noopener noreferrer nofollow">states</a> Alexey Grivach, author of the report and deputy director of the Russian National Energy Security Fund. This redistribution of trade flows saw Russian oil deliveries to India multiplied by 18 in just two years, increasing from 4.5 million tonnes in 2021 to 82 million tonnes in 2023. Meanwhile, China also strengthened its position by absorbing 107 million tonnes of Russian oil this year, compared to 80 million in 2021.</p>
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<p>This reorientation is not accidental. With sanctions targeting energy transactions via Western payment systems, Russia had to urgently develop alternative solutions to ensure the continuity of its trade with its Asian allies. Maritime routes, insurance, and payments have all been revamped to bypass Western restrictions, marking a reorganization of global oil trade. In this context, India and China are positioning themselves as crucial partners for Russia.</p>
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<h2 id="the-brics-and-the-transformation-of-energy-payment-systems">The BRICS and the transformation of energy payment systems</h2>
<p>Alongside this redistribution of trade flows, the BRICS are advancing on another strategic front: the overhaul of payment systems for energy resources. This process has been accelerated by Russia’s exclusion from American and European financial systems due to sanctions. In response, pilot agreements have been established between Saudi Arabia and China, allowing for the sale of oil in yuan rather than dollars. This initiative, although recent, illustrates the BRICS’ intention to “systematize a secure payment framework that is not vulnerable to unilateral sanctions,” as the Valdai report indicates. The abandonment of the 50-year agreement between the United States and Saudi Arabia, which tied oil transactions to the dollar, constitutes a historic break with the greenback’s hegemony in international energy trade.</p>
<p>This realignment of payment systems goes well beyond Russia. It foreshadows a reformation of global trade mechanisms, as the BRICS seek to protect themselves from Western financial interference. If these initiatives succeed, they could constitute a decisive step for the future of global economic relations. Thus, the bloc could soon form a consortium capable of rewriting the rules of energy trade.</p>
<p><br><em>This reorientation of oil flows and payment systems between Russia and its BRICS partners could herald a major transformation in the global energy order. While Western sanctions have forced Russia to accelerate its relations with India and China, they have also encouraged the BRICS to explore unprecedented financial alternatives. The development of these payment systems could allow these countries to bypass future sanctions and also <a href="https://www.cointribune.com/en/brics-the-us-dollar-is-in-decline-and-the-consequences-could-be-disastrous/" target="_blank" rel="noopener noreferrer nofollow">redefine the place of the dollar in global trade</a>.</em></p>

BRICS : India And China absorb 78 % of russian Oil

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