In 2023, Türkiye witnessed a substantial decrease in energy expenditures, thanks to increased importation of discounted Russian oil and refined products. This strategic move resulted in savings of approximately $2 billion. By procuring Russian diesel at a reduced rate, between $25 to $150 less per ton or $3.3 to $20 less per barrel compared to similar grades in the Mediterranean market, Türkiye gained a significant financial advantage.
Securing Discounts and Reducing Deficit
The country also secured discounts ranging from $5 to $20 per barrel for crude oil. The influx of cheaper Russian oil positively impacted Türkiye’s economy, aiding in the reduction of its trade deficit and alleviating some of the pressure on its currency, which has depreciated by 30% this year.
Record Imports and Anticipated Increase
With the record imports of Russian Urals crude oil reaching 400 thousand barrels per day in November, accounting for 14% of Russia’s total maritime oil exports, Türkiye is making its mark in the international oil market. The country is also anticipating an increase in supplies following a deal between Russian oil producer Lukoil and Azeri firm SOCAR for refining at SOCAR’s Turkish STAR refinery.
Despite the presence of Western sanctions, Türkiye is poised to strengthen its energy import strategy further. The considerable cost reduction in energy expenditures and the potential increase in supplies from Russia provide Türkiye with a robust foundation to build upon, setting the stage for continued economic recovery and growth.
Source: bnnbreaking