Russia’s oil and gas revenues have soared, despite Western sanctions. According to the latest figures, cited by Reuters, in April they will double to $14 billion. In April 2023 the corresponding amount was about 7 billion dollars.
In fact, the jump in oil and gas revenues for Russia in April is much larger on a percentage basis than the expected 30% increase for the whole of 2024. According to the international agency, the main reason for this jump is the increase in prices.
As highlighted in the publication, the figures demonstrate the difficulties faced by Western nations to limit the Kremlin’s revenues, causing a “financial suffocation”, which would cause problems for the Russian military’s operations in Ukraine.
What if the West imposed sanctions on Russia
It is recalled that the West has imposed multiple sanctions aimed at limiting Russian revenues from oil and natural gas, which represent about a third of the country’s budget.
The final official data for April is expected to be published by the Russian Finance Ministry in early May. Reuters’ preliminary calculations are based on data from industry sources and official statistics on oil and gas production, refining and supplies to domestic and international markets.
Meanwhile, energy revenues also significantly narrowed the expected fiscal deficit for the first three months of 2024 to 607 billion rubles, or 0.3 percent of gross domestic product (GDP).
For 2024 overall, the government has budgeted for federal revenues of 11.5 trillion rubles from oil and gas sales, up 30% from 2023 and reversing a 24% drop the previous year, which was due to lower oil prices. oil and natural gas exports hit by sanctions.
