Russia’s oil revenue is expected to soar

Russia is expected to have a sharp increase in income in the oil sector in 2022 – Photo: BLOOMBERG

According to a report released by Rystad Energy on May 2, Russia’s oil income will increase sharply in 2022 and reach more than $180 billion, despite production cuts related to international sanctions. altar RT said.

According to Rystad Energy, thanks to rising oil prices, Russia’s tax revenue will be 45% higher than in 2021 and 181% higher than in 2020.

“Europe’s dependence on Russian energy has been a purposeful, decades-long and mutually beneficial relationship. In the early stages of sanctions and embargoes, Russia will be benefit from higher prices, which means significantly higher tax revenue than in recent years,” said Daria Melnik, a senior analyst at Rystad Energy.

Rystad Energy said that the initial problems Russia had with its oil exports when European customers started rejecting its oil “were quickly resolved”. Oil sales began to recover at the end of March, supported by orders from China and India. Russia’s crude oil exports still rose in April.

The European Union (EU), the US and its allies have imposed sanctions against Russia, with the aim of leaving the country short of cash and forcing it to abandon its military operations in Ukraine.

However, due to its high dependence on Russian oil and gas, turning away from Moscow makes EU countries face many difficulties.

So far, the EU has committed to phasing out Russian gas by 2030. If the EU decides to further restrict energy imports from Russia and imposes an oil embargo, Russia will be forced to cut oil production further.

According to Rystad Energy, in the long term, Russia’s crude oil production will continue to fall more than estimated due to the impact of the war in Ukraine.