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Higher oil prices are expected to double Russia’s oil and gas revenues in April compared to the same month last year, according to Reuters calculations based on data from industry sources and official statistics on oil and gas production and supply.
This month, Russia is expected to pocket $14 billion (1.292 trillion Russian rubles) from oil and gas, according to the estimates. That’s double compared to the $7 billion (648 billion rubles) Russia received from oil and gas in April last year.
This month’s Russian oil and gas revenues are set to slightly drop from $14.15 billion (1.308 trillion rubles) in March 2024, according to the Reuters calculations.
Russia’s oil and gas revenues slumped by 23.9% last year compared to 2022 as lower oil prices and reduced pipeline gas exports weighed on budget income from fossil fuels, Russian Finance Ministry data showed in early January. The decline was the result of lower oil prices compared to 2022, lower prices for Russia’s flagship crude grade Urals in early 2023, and lower natural gas prices and exports, the Russian finance ministry said at the time.
Reuters estimates that Russia’s revenues from oil and gas for 2024 would be 30% higher compared to 2023.
The billions of U.S. dollars still flowing to Russia’s budget highlight the difficulties the West sees in the attempts to stifle Putin’s revenues to use in the war in Ukraine.
Banned in the West, Russian crude finds buyers in China and India, while Russian LNG – not sanctioned by the EU or the U.S. – is arriving at European ports, which have increased the intake of LNG cargoes in the past two years, including from Russian LNG export facilities.
The EU is uncertain how to handle LNG imports from Russia in the short term.
Meanwhile, Russia was estimated to have exported the highest level of oil from its ports in 11 months in the week to April 14, as export terminals likely shipped more crude that couldn’t be processed at refineries knocked offline by Ukrainian drone attacks, tanker-tracking data monitored by Bloomberg showed last week.
By Charles Kennedy for Oilprice.com
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But what is absolutely exceptional is that despite the most unprecedented and harshest Western sanctions in history, Russia isn't only enhancing its energy export revenues but its economy is also in a far better shape that the economies of those who imposed sanctions against it.
According to the IMF Russia's economy is projected to grow this year at 3.2% compared with 2.0%-2.5% for the United States and 0.8% for the EU.
Dr Mamdouh G Salameh
International Oil Economist
Global Energy Expert