Russia's oil and gas revenues to double despite sanctions – Reuters

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 is reported with reference to Reuters calculations.

According to the agency, these data emphasize the difficulties faced by Western countries seeking to limit the Kremlin's revenues and stifle its military machine.

The war against Ukraine has 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 whole of 2024.

Reuters calculations show that Russia's projected April oil and gas revenues will total 1.292 trillion rubles ($14 billion), up from 648 billion rubles in April 2023 and slightly below 1.308 trillion rubles last month.

Reuters calculations are based on 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-based economy and for financing the war against Ukraine.

Russia's budget deficit decreased to 607 billion rubles, or 0.3% of gross domestic product (GDP), in the first three months of the year, 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 compensates for the 24% decline last year due to lower oil prices and gas exports affected by sanctions.

Author – Anastasiya Glotova, 24/04/2024