1996 Russian net oil exports averaged 3.5 million barrels per day (mmbd), up 0.2 mmbd from 1995

Russian net oil exports to countries outside the former Soviet Union (FSU) averaged 3.1 mmbd in 1996, up 0.5 mmbd from 1995. The share of net exports to countries outside the FSU has risen from 53% in 1992 to 90% in 1996. Former East Bloc countries imported 0.6 mmbd via the Druzhba pipeline, which passes through Ukraine on the way to the Czech Republic , Poland , and other countries in Eastern Europe. Net exports to the United States ranged from 23,000 - 28,000 barrels/day in 1994 - 1996.

Over 1.1 mmbd of Russian oil exports in 1996 went via Black Sea ports, over 0.5 mmbd through Baltic ports, 0.8 mmbd through the Druzhba pipeline, and the rest through smaller ports and pipelines. Exports from Black Sea ports increased to their highest level since 1990, and have become a concern to Turkey because they must pass through the increasingly crowded Bosporus. Turkey has expressed strong environmental concerns about any increased shipping traffic through the narrow Turkish channel between the Black Sea and the Mediterranean through which many Russian oil supertankers now pass on their way to export markets.

Most of the Russian oil joint venture exports went via the Druzhba pipeline, with smaller amounts exported through the port of Ventspils (Latvia), as well as Black Sea ports. Joint venture exports averaged 200,000 barrels/day in 1996, slightly less than in 1995. Joint ventures and other oil producers have been hampered by the lack of pipeline access to export their oil. Russian crude oil exports have increasingly been dominated by the state under a system in which the state buys crude from producers at internal (low) prices, and then exports the crude oil at international market prices, which are much higher. The profits from these sales are used to fund special government programs which have proliferated in recent years. State exports have increased from about 1/4 of the share of total crude oil exports outside the FSU in 1995 to 2/3 of the share in 1996. The share of state exports could rise even further in 1997 if all of the state contracts are fulfilled.

1996 Russian net natural gas exports were 6.9 trillion cubic feet (tcf), up 0.4 tcf from 1995

These high export levels were achieved despite a slow decline in gas production from 22.6 tcf in 1992 to 21.0 tcf in 1995 and 21.2 tcf in 1996. Increased gas exports were made possible by a decline in domestic consumption; during the 1992-1996 period gas consumption fell by 2.1 tcf.

While total net gas exports in 1996 reached new highs, the destination of exports has changed over the past few years. The share of net exports to countries outside the FSU has increased from 51% in 1992 to highs of 63-64% in 1995-1996. The gas is exported westwards via several very large pipelines that pass through Ukraine to Europe - Brotherhood (Bratstvo), Progress, Northern Lights, and Union (Soyuz) - and the smaller Volga/Urals-Vybord pipeline to Finland.

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File last modified: May 9, 1997

Contact:

Erik Kreil
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