Bloomberg: Russiaʼs income from fuel sales fell to a 14-month low

Author:
Anna Kholodnova
Date:

Russiaʼs energy revenues fell to their lowest level in 14 months in August.

Bloomberg writes about it.

The publication notes that Western sanctions due to Russiaʼs war against Ukraine prompted the Kremlin to sell oil at reduced prices on Asian markets, losing the benefit from the increase in global energy prices.

According to the Russian Ministry of Finance, oil and gas revenues of the Russian Federation, which make up more than a third of the national budget, fell to 671.9 billion rubles ($11.1 billion) last month. This is the lowest figure since June 2021 and almost 13% less than in July. Compared to last year, Russiaʼs energy income decreased by 3.4%, although prices for Urals oil rose by almost 10%.

  • During the G7 summit, the United States and its allies discussed ways to reduce the price of Russian oil on the world market. They want to see it at the level of $40-60 per barrel, which will seriously affect Russian revenues.
  • Against the background of the war, the USA and the EU gave up Russian fuel, but in stages. The EU allocated half a year to abandon oil, and up to eight months to abandon petroleum products. Oil deliveries via pipelines have not been sanctioned.