Russia’s budget is expected to skyrocket thanks to oil exports

Russia will see income from the oil sector increase sharply this year and reach more than $180 billion, despite related production cuts, according to a report published by independent researcher Rystad Energy on May 2. to international sanctions.

Ask for a favor oil prices increase, Russia’s tax revenue will be 45% higher than last year and 181% higher than in 2020, Rystad Energy said.

“Europe’s dependence on Russian energy is a purposeful and decades-long and mutually beneficial relationship. In the early stages of these sanctions and embargoes, Russia will benefit as higher prices mean significantly higher tax revenues than in recent years. Daria Melnik at Rystad Energy said.

According to the company, the initial problems Russia had with oil exports when European customers started importing were quickly resolved and volumes started to recover at the end of March, thanks to the support of the company. support of orders from China and India. Russia’s crude oil exports still increased in April.

The EU, the US and their allies have imposed sanctions against Russia with the aim of draining the country of cash and forcing it to abandon its military campaign in Ukraine. However, Europe’s heavy reliance on Russian oil and gas means turning away from the country has proven problematic. The EU has committed to phase out Russian gas in 2030.

Rystad Energy explained that, if the EU decides to further restrict energy imports from Russia and imposes an oil embargo – something the bloc is said to be looking at – Moscow will be forced to cut production more oil because Russia lacks the storage capacity to add more crude volumes. In the long term, Russia’s crude oil production will continue to fall more sharply than estimated before the crisis Ukraine.