Russian companies are actively pursuing expansion in the Global South and still see themselves as global players despite harsh Western sanctions, according to Andrei Kostin, CEO of VTB, Russia’s second-largest bank. Speaking to Reuters, Kostin said that Russian energy and financial firms continue to hunt for opportunities abroad, with a growing emphasis on markets in Asia, Africa, and Latin America.
His comments follow a fresh wave of U.S. sanctions imposed in October on Russia’s two largest oil companies, Rosneft and Lukoil. The sanctions forced Lukoil to sell overseas assets at steep discounts. Those assets represent roughly 0.5% of global oil production. Kostin said this has prompted companies to look for new investment avenues and manufacturing opportunities in countries less aligned with the West, especially China and other emerging economies.
VTB has been directly involved in earlier expansion efforts. The bank participated in the 2017 acquisition of India’s Essar Oil—now Nayara Energy—by a consortium led by Rosneft. Kostin noted that the business model in India is entirely domestic, with no export plan. Despite sanctions, he said, operations have continued without disruption.
Kostin argued that Russian firms should replicate VTB’s strategy of pivoting away from Western markets. The bank once held successful positions in the U.S. and Europe but shifted focus after sanctions made traditional operations untenable. He believes other large corporations, especially oil companies, will follow suit as geopolitical pressure continues. He added that oil companies could benefit financially from restrictions, since supply constraints can drive higher global oil prices.
Russia remains confident that demand for its oil will endure, particularly in Asia. Kostin emphasized that “Russian oil will always be in demand,” suggesting that global energy trends will not easily displace Moscow’s position as a major supplier.
Kostin will join President Vladimir Putin on a two-day visit to India from December 4–5. India has emerged as the biggest buyer of discounted Russian oil since sanctions were introduced, although rising regulatory pressure could disrupt supplies. Kostin said it is uncertain how India will respond going forward, but the economic incentive to continue buying Russian crude remains strong.
While he dismissed fears that U.S. sanctions would “kill” Russian energy companies, Kostin acknowledged several obstacles in Russia-India trade. Indian banks remain cautious about conducting transactions with sanctioned Russian entities, and settling payments in national currencies has been complicated by trade imbalances. India imports far more from Russia—primarily oil—than it exports, creating structural challenges for the ruble-rupee payment mechanism.
Despite these hurdles, Kostin sees significant commercial potential. He said VTB plans to deepen its presence in India by opening a Mumbai office to complement its existing New Delhi branch. He believes India could boost exports to Russia, particularly in machinery and pharmaceutical sectors, which are in demand due to Russia’s manufacturing and healthcare needs.
The broader shift toward the Global South reflects Russia’s search for sustainable economic partners outside the Western sphere. Sanctions have cut Moscow off from major financial markets, technology supply chains, and commodity buyers in Europe and North America. However, countries with large domestic markets, strategic neutrality, or resource needs have become key components of Russia’s new commercial strategy.
For Russian businesses, the pivot is both reactive and opportunistic. Sanctions have forced companies to abandon some international assets, but growing demand in emerging regions offers alternative paths to growth. As geopolitical tensions reshape global trade, Russia appears determined to build new networks rather than retreat from the international arena.
