Russia’s gas and oil revenues increased despite sanctions

Russia’s gas and oil revenues increased despite sanctions

From . – 01/16/2023 09:56 (act. 01/16/2023 10:41)

Russia's gas and oil revenues increased by 34 billion euros.

Russia’s gas and oil revenues increased by 34 billion euros. ©Portal/Hannibal Hanschke/File photo (symbol image)

Russia’s gas and oil revenues increased by €34 billion despite sanctions over Russia’s war of aggression in Ukraine.

Despite Western sanctions over the war against Ukraine, the Russian government has made a lot more money from the oil and gas business.

Gas and oil revenues rise according to Russia

Budget revenue rose 28 percent or 2.5 trillion rubles (nearly 34 billion euros) last year, Deputy Prime Minister Alexander Novak said at a cabinet meeting broadcast on state television.

The Gazprom group increased the supply of gas to China through a pipeline in Siberia to 15.5 billion cubic meters. Oil production also increased two percent to 535 million tonnes, while oil exports increased by seven percent.

Export of liquefied natural gas from Russia increased

“As a result of sanctions-related restrictions and accidents on the Nord Stream-1 and Nord Stream-2 pipelines, pipeline gas exports have declined,” Nowak said. “At the same time, production and export of liquefied natural gas increased by 8 percent to 46 billion cubic meters of gas per year,” he said.

Since the Russian attack on Ukraine, the EU has adopted nine sanctions packages against Russia. An embargo on Russian oil shipped to the EU has been in place since December. An oil price cap is also expected to force Russia to sell oil for no more than $60 a barrel (159 liters). There are also export bans designed to make it impossible for Russia to modernize its oil refineries. EU sanctions expressly do not include a gas export ban.