Over 34% of Russia’s federal budget comes from oil and gas revenues - money that is instrumental in funding the country’s war in Ukraine.
It is even more interesting to know that a key Pentagon supplier for years has also been involved in receiving petroleum products originating from Russia. All that despite widespread sanctions on Russian exports imposed by the West.
Motor Oil Hellas is one of the Defense Logistics Agency’s top 10 contractors over the past five years with more than $1.1bn paid by the Agency since the fiscal year 2019.
Yet, the company has continued to receive petroleum products originating from Russia in its refinery on the Aegean Sea in Greece even after trade sanctions were put in place.
What is key here is that these products have now started to flow through different routes in order to conceal their origin before they reach their final destination.
Knowing that, it appears useful to monitor Russia’s exports of oil and gas products more closely as trade data can reveal significant insights into the country’s sources of revenue, especially in times of heightened tensions with the West.
Shedding light on the actual level of exporting activity Russia continues to perform has multiple applications for stakeholders.
First of all, it supports the monitoring of sanctions efficiency. Evidence shows that Russian exports can find their way around them. Consequently, more effective strategies based on a data-driven approach could be devised to block these activities.
Secondly, the data is a powerful tool that brings Russia’s foreign economic ties to the surface, including some unexpected ones. Such is the case with the exports of petroleum products reaching their final destination in the Greek refinery.
Then, another argument favoring use of Russian trade data has to do with the better understanding of the country’s economic priorities and how it plans to develop different sectors.
For example, latest data shows that the dairy industry is adopting an export-oriented approach in a pursuit of opening new markets. Countries in the Middle East such as the UAE are among the most prominent destinations for these products.
It is now possible to gain more insights like this and track the transactions made by Russian government agencies since 2018 with TenderAlpha’s Global Government Supply Chain Transactions Data and Trade Flows Data.
By examining the routes commodities take, you can view for yourself the trade patterns that dominate Russia’s exports and include this information in your analyses and decision-making process.
To learn more about our Russian data, contact us and get a free sample!