Gazprom Neft also diverted exports to Asia earlier, developing supplies under sanctions - CEO

MOSCOW. May 19 (Interfax) - Gazprom Neft is diverting supplies of oil and oil products to Asia's emerging markets amid European Union and United States sanctions, Gazprom Neft CEO Alexander Dyukov said at the New Horizons marathon held by Russia's Znanie society.

Gazprom Neft is operating stably in spite of sanctions, Dyukov said. The company's business processes are effective and passed the test of Covid-19 in 2020, when there was an unprecedented drop in demand, and the company ended the year with a profit, he said.

The oil market is global, and oil and oil products are in demand not only in Europe, Dyukov said.

"We're continuing the process of diverting freight traffic to other markets," Dyukov said, noting that growth in demand is taking place predominantly in the emerging markets of Asia, and the company is supplying volumes that were previously supplied to Europe there.

Europe could theoretically introduce a full embargo on purchases of Russian oil, but that would then affect standards of living and a still higher price would have to be paid for it along with possible interruptions in supplies of motor fuel and electricity, he said.

Dyukov is also skeptical of the abilities of the U.S. to replace supplies of Russian gas to Europe. "Maybe in a few decades," he said.