Russian oil and gas revenues to double despite sanctions - Reuters
Kyiv • UNN
Despite Western sanctions, Russia's oil and gas revenues are projected to almost double year-on-year to $14 billion in April 2024, thanks to rising prices.
Russia's revenues from oil and gas sales in April 2024 will almost double year-on-year to $14 billion due to rising prices. This was reported by Reuters, according to UNN.
Details
The publication notes that the war against Ukraine prompted the West to impose numerous sanctions aimed at limiting Russia's oil and gas revenues, which account for about a third of the country's federal budget. The measures also include restrictions on the purchase of Russian oil, financial transactions, and a price cap of $60 per barrel.
The projected April jump in oil revenues in Russia is higher in percentage terms than the 30% growth expected for the entire year 2024.
Reuters calculations show that Russia's projected oil and gas production revenues in April will be 1.292 trillion rubles ($14 billion), up from 648 billion rubles in April 2023 and slightly below 1.308 trillion rubles last month.
The publication's calculations are based on data from industry sources and official statistics on oil and gas production, refining, and supply to domestic and international markets.
Revenues from oil and gas sales are crucial for Russia's commodity economy and for financing its war against Ukraine.
Russia's budget deficit for the first three months of the year decreased to 607 billion rubles, or 0.3% of gross domestic product (GDP), helped by the recovery of energy revenues.
In total, for 2024, the Russian government has budgeted federal revenues of 11.5 trillion rubles from oil and gas sales, which is 30% more than in 2023 and will compensate for the 24% decline last year due to lower oil prices and gas exports affected by sanctions.
Recall
In February 2024, Gazprom became the largest supplier of pipeline gas to China for the first time, overtaking the long-time leader Turkmenistan.
