Russia Anticipates Record Energy Profits, Says Think Tank
An independent energy think tank predicts that the Russian budget will see unprecedented revenue from oil and gas exports this year. Read Full Article at RT.com
TroibNews 
Income from oil and gas exports in 2024 is anticipated to rank just behind that of 2022.
According to the independent economic think tank Institute for Energy and Finance Foundation (FIEF), Russia’s energy revenues could hit record levels this year, supported by elevated export oil prices.
During the Far Eastern Energy Forum “Oil and Gas of Sakhalin” on Friday, FIEF Director of Research Aleksey Belogoriev noted that profits from oil and gas have surged significantly this year.
Belogoriev reported that, for the period of January to July, oil exports saw a 63% increase compared to the same timeframe in 2023, amounting to 6.4 trillion rubles. Gas revenues also rose, climbing by 13% to 1.2 trillion rubles.
“This year’s [oil and gas] revenues will be lower than in the record 2022, becoming the second highest in history,” said Belogoriev.
He mentioned that the rise in average export oil prices and the relatively low revenue from the first half of 2023 contributed to this situation.
In January, the average price for a barrel of Russia’s prominent Urals blend was $60, but by April, it had steadily increased to $84. In July, Russian crude was trading around $80 per barrel.
This growth occurred despite numerous sanctions imposed on Russia by the US, the EU, and their allies since the onset of military operations in Ukraine in 2022.
These sanctions included an embargo on seaborne Russian oil and a $60-per-barrel price cap on certain crude varieties.
While EU countries have not sanctioned Russian natural gas, they have begun to distance themselves from it. In response, Russia has shifted its energy exports towards Asia, particularly targeting India and China, to mitigate the loss of some Western customers.
According to the Finance Ministry's latest data released on Thursday, oil and gas revenues for the Russian budget increased by 49.4% year-on-year during January to September. The ministry projects that oil and gas earnings will reach 10.99 trillion rubles this year, compared to 11.586 trillion rubles received from energy exports in 2022.
Mark B Thomas for TROIB News
According to the independent economic think tank Institute for Energy and Finance Foundation (FIEF), Russia’s energy revenues could hit record levels this year, supported by elevated export oil prices.
During the Far Eastern Energy Forum “Oil and Gas of Sakhalin” on Friday, FIEF Director of Research Aleksey Belogoriev noted that profits from oil and gas have surged significantly this year.
Belogoriev reported that, for the period of January to July, oil exports saw a 63% increase compared to the same timeframe in 2023, amounting to 6.4 trillion rubles. Gas revenues also rose, climbing by 13% to 1.2 trillion rubles.
“This year’s [oil and gas] revenues will be lower than in the record 2022, becoming the second highest in history,” said Belogoriev.
He mentioned that the rise in average export oil prices and the relatively low revenue from the first half of 2023 contributed to this situation.
In January, the average price for a barrel of Russia’s prominent Urals blend was $60, but by April, it had steadily increased to $84. In July, Russian crude was trading around $80 per barrel.
This growth occurred despite numerous sanctions imposed on Russia by the US, the EU, and their allies since the onset of military operations in Ukraine in 2022.
These sanctions included an embargo on seaborne Russian oil and a $60-per-barrel price cap on certain crude varieties.
While EU countries have not sanctioned Russian natural gas, they have begun to distance themselves from it. In response, Russia has shifted its energy exports towards Asia, particularly targeting India and China, to mitigate the loss of some Western customers.
According to the Finance Ministry's latest data released on Thursday, oil and gas revenues for the Russian budget increased by 49.4% year-on-year during January to September. The ministry projects that oil and gas earnings will reach 10.99 trillion rubles this year, compared to 11.586 trillion rubles received from energy exports in 2022.
Mark B Thomas for TROIB News
