Russia’s oil drilling boom proves Moscow’s resilience to Western sanctions

Russia was on pace for a second year of record oil drilling in 2023, further evidence of the nation’s resilience to Western sanctions.

The boom in activity came alongside a recovery in the both volume and value of Russia’s oil exports, a stark illustration of how the country’s fossil fuel industry has been a crucial source of funds for President Vladimir Putin’s war in Ukraine, which is about to enter its third year.

“Russia is substantially more independent in its oil-field services than generally appreciated,” said Ronald Smith, an oil and gas analyst at Moscow-based BCS Global Markets.