Russia sees sanctions impact on oil products, eyes crude export boost - senior source

Russia expects Western sanctions to have a significant impact on its oil products exports and therefore its production, but that will likely leave more crude oil to sell, a senior Russian source with detailed knowledge of the outlook told Reuters.

In what the West casts as unprecedented sanctions and President Vladimir Putin deems a declaration of economic war, the United States and its allies are trying to constrict the economy of Russia, the world's second-largest oil exporter after Saudi Arabia.

In an attempt to punish Russia for the conflict in Ukraine, the European Union banned seaborne Russian crude imports from Dec. 5 and will ban Russian oil products from Feb. 5.

"The oil products' embargo will have a greater impact than the restrictions on crude oil," said the senior Russian source who spoke on condition of anonymity due to the sensitivity the situation.

The source said the sanctions will lead to more crude oil supplies from Russia, which lacks storage capacity for oil products.

Crude oil is easier to export than products, which require smaller tankers and markets within closer proximity, while crude can sail to far-flung regions of Asia and America.