Jakarta, CNBC Indonesia – Russia is being threatened by various economic sanctions by the western world for its actions in Ukraine. One of them is by trying to kick Russia out of the international banking information network known as SWIFT.
These sanctions are expected to disrupt exports of Russian natural products such as oil and gas. Alexandra Vacroux, Executive Director at the Davis Center for Russian and Eurasian Studies at Harvard University, said that Russia relies heavily on oil and gas exports for international financial transactions.
So that by ‘kicking’ Russia from SWIFT, it will have an impact on the difficulty of oil and gas exports from Russia to the world and so far Russia’s income has come from oil and gas exports. Therefore, it will be even more difficult for the government to fund the budget if oil and gas exports drop.
If the sanctions are imposed, world supplies could be disrupted because Russia’s role in meeting world commodity needs is quite strategic.
The problem is, Russia is not only the king of oil and gas. Russia is a producer as well as a major exporter of several world commodities that have an important role in world life. Such as energy, minerals, and food. So that when Russian commodities cannot be exported, there will be supply shocks in some commodities, of which Russia is the main supplier.
The following is the CNBC Indonesia Research Team that has collected commodities that are Russia’s advantages in the world:
Natural Gas
Russia is the world’s king of natural gas. If Russia cannot meet the world’s demand for gas as a result of the war, world supplies could be scarce. Because Russia plays a strategic role in the availability of world oil and gas.
According to BP Statistics Review, more than a quarter of the world’s gas needs are supplied by Russia. To be precise, Russia has a 26.2% share of worldwide exports totaling 197.7 billion cubic meters.
Russia is the second largest natural gas producer in the world with a contribution reaching 16.6% of natural gas production in 2020 with a total of 638.5 billion cubic meters. Its reserves reach 1,320.5 billion cubic meters, equivalent to 19.9% of world reserves.
A lot of Russian gas flows into Europe with a volume of 167.7 billion cubic meters in 2020. This amount is equivalent to 37.5% of Europe’s total natural gas imports.
Crude oil
Meanwhile, Russia is the fourth largest exporter of crude oil in the world with a market share of 11.4% of the total oil supply with an average export of 8 million barrels per day (bpd) over the last ten years, citing data from BP Statistics.
Most of Russia’s oil exports to Europe. The amount is 138.2 million tons in 2020. This amount is equivalent to 29% of Europe’s total oil imports, which is 475.9 million tons a year.
Russia’s oil production reached 10.7 million bpd, equivalent to 12.1% of world production. This number puts Russia in the 3rd largest crude oil producer in the world. Meanwhile, Russia’s proven crude oil reserves reached 107.8 million barrels.
Coal
Russia is the world’s third largest exporter after Indonesia and Australia. In 2019, Russia’s exports reached 217 million tons. If supplies from Russia were stopped due to war, the world would lose 17.8% of its supply.
Russian customers are also not kidding because they come from coal ‘addict’ countries such as China, Japan, South Korea, and India. China imported 15.25 million tonnes or 4.72% of total coal imports from Russia in 2021, according to customs data.
Then, Russia is the second largest supplier of thermal coal in Japan. In 2021 Russia accounted for 12.48% according to Japanese customs data.
Russia is the second largest coal supplier to South Korea in 2021 after Australia, shipping 21.95 million tonnes worth about $2.56 billion and accounting for 17.5% of South Korea’s total coal imports.
India as the world’s second largest coal consumer also imports coal from Russia. The portion reaches 1.3% of the total national coal imports.
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