Russia intends to sell over 80% of its oil exports to “friendly” countries this year, Russian Deputy Prime Minister Alexander Novak said on Monday, referring to the states that did not impose sanctions on Russia following the invasion of Ukraine, reports Reuters.

The group of highly industrialized countries (G7), the European Union and Australia agreed, on December 5, 2022, to ban Western companies from providing insurance, financing and brokerage services for ships carrying Russian crude oil at a price higher than $60 per barrel, as part of the sanctions imposed on Moscow for the invasion of Ukraine. Later, the European Union introduced an embargo on the purchase of refined petroleum products from Russia starting on February 5.

“Friendly” countries will also receive 75% of Russian refined oil products, and Moscow continues to look for new markets, Novak added, according to Agerpres.

Russia has accelerated cut-price sales to China and India since the imposition of Western sanctions.

Novak warned of uncertainties in global oil markets, arguing that Western OECD countries, which include the United States, Canada and Norway, could release their strategic oil reserves.

On Friday, Novak announced that Russia would cut its oil production in March by 500,000 barrels per day, equivalent to about 5 percent of its crude output, after the West imposed price ceilings on oil and oil products exported by Russia.

Despite many predictions of a decline due to Western sanctions, Russia’s oil production actually rose 2% last year as a whole to 535 million tonnes (10.7 million barrels per day), thanks increasing sales on Asian markets, especially in India and China.

However, after several rounds of new sanctions introduced by the West, Russia is currently facing even more challenges in maintaining its oil production, a crucial source of revenue for the Russian state budget.