Russian oil income increases 50 percent
Date
6/13/2024 5:46:07 AM
(MENAFN) Recent reports from Bloomberg indicate that Russia experienced a substantial increase in oil revenues, soaring nearly 50 percent compared to the previous year. Despite facing ongoing Western sanctions and international pressure, Moscow's income from crude oil sales in May was bolstered significantly by soaring crude prices and strategic adaptations.
According to calculations based on data from the Russian Finance Ministry, oil-related taxes alone reached 632.5 billion rubles (USD7.1 billion) in May. The total profits from oil and gas combined also saw a robust growth of 39 percent, amounting to 793.7 billion rubles (USD8.9 billion). This surge in revenues correlates with the rising prices of Urals crude, Russia's primary export blend, which averaged USD74.98 per barrel in May compared to USD58.63 a year earlier.
Despite sanctions aimed at curbing Russia's export revenues, such as the G7 and European Union's USD60 per-barrel price cap on Russian oil and the European Union embargo on Russian seaborne oil, Moscow has strategically redirected a significant portion of its energy exports towards Asia. Countries like India and China have become vital markets where Russian oil commands prices well above those in the West, mitigating the impact of Western sanctions.
The Finance Ministry's preliminary report for January to April also highlighted a notable 50.1 percent increase in energy export proceeds compared to the same period in 2023, underscoring Russia's ability to navigate and even capitalize on global economic challenges. These developments underscore Russia's resilience in leveraging its natural resources amidst geopolitical pressures, signaling continued robustness in its energy sector despite international sanctions.
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