FIEF claims Russia's energy revenue is on track to achieve record levels
Date
10/6/2024 8:23:16 AM
(MENAFN) According to the Institute for energy and Finance Foundation (FIEF), Russia's energy revenue is on track to achieve record levels this year, largely due to elevated export oil prices. The insights were shared by FIEF's Director of Research, Aleksey Belogoriev, during the Far Eastern Energy Forum titled “Oil and gas of Sakhalin” on Friday.
Belogoriev noted a significant surge in oil and gas profits, revealing that income from oil exports soared by 63% in the first seven months of 2023 compared to the same period in the previous year, reaching an impressive 6.4 trillion rubles (approximatelyUSD67.5 billion). Meanwhile, gas revenue saw a 13 percent increase, totaling 1.2 trillion rubles (USD12.6 billion).
While FIEF anticipates that this year’s total oil and gas revenues will fall short of the record highs achieved in 2022, they are still expected to mark the second-highest earnings in Russia's history. Belogoriev attributed this robust performance to the rising average export prices for oil, coupled with relatively lower revenue figures recorded during the first half of the year.
For instance, the price of Russia’s flagship Urals blend of crude oil began the year at an average ofUSD60 per barrel but climbed steadily to approximatelyUSD84 by April. In July, the price stabilized aroundUSD80 per barrel, reflecting the market's resilience despite ongoing geopolitical tensions.
This positive trend in Russian energy revenue comes in the face of extensive sanctions imposed by the United States, the European Union, and their allies following the escalation of hostilities between Moscow and Kiev, which began with Russia’s military operation in Ukraine in 2022. The sanctions package included a ban on seaborne Russian oil and a price cap ofUSD60 per barrel on other crude oil types.
Despite these restrictions, Russia's energy sector has shown remarkable adaptability, positioning the country to benefit from high global oil prices while navigating the challenges posed by international sanctions. As the year progresses, the implications of these revenue gains on Russia's economy and its geopolitical strategies will be closely monitored.
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