Russia’s Oil And Gas Revenues Are In Decline –

by | Jan 19, 2023 | Energy

Russia’s current account surplus hit a record last year as imports fell with the sanctions while the value of exports surged as commodity prices soared in the wake of the Russian invasion of Ukraine.  However, as 2022 progressed, Russia saw its current account surplus drop quarter on quarter after a quarterly record in Q2 as Moscow choked pipeline gas exports to Europe while buyers of its oil were asking for steep discounts to purchase Russian crude grades.  Russia’s revenues from oil and gas were very high in 2022 due to high prices and still high volumes of exports. Going forward, the steep discounts on the flagship Russian grades versus Brent prices and the additional bans on Russian energy products—including a ban on seaborne imports of refined Russian petroleum products into the EU as of February 5—are set to lead to declines in Putin’s energy export revenues compared to the 2022 revenues, analysts say. The G7 price cap and the EU embargo on Russian crude oil imports by sea may still be a regulatory minefield for players in the industry, but those sanctions have achieved one of their key goals. That’s to reduce Putin’s oil revenues, the mainstay of Russia’s budget. Moscow is now forced to sell much of its crude oil at deep discounts to internation …

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