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Russia's budget will receive additional $260 Bln from oil, gas sales

  • By Al Mayadeen Net
  • Source: Agencies
  • 2 May 2022 16:57
  • 3 Shares
2 Min Read

High energy prices are projected to add $260 billion to Russia's budget.

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  • Russian energy exports rebounded because of new orders from China and India
    Russian energy exports rebounded because of new orders from China and India

Norwegian research company Rystad Energy said on Monday that Russia might end up adding $260 billion to its budget from its energy exports, brought on by high energy prices.

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Rystad Energy's research shows that despite cuts in oil production this year, the spike in oil prices will increase tax revenue to more than $180 billion. Additionally, extremely high gas prices in Europe and LNG prices in Asia will generate close to $80 billion of tax flows in Russia.

Europe's avoidance to buy Russian oil over concerns of sanctions after Russia started the military operation in Ukraine created problems for Moscow over three weeks. The exports later rebounded in late March thanks to new orders from China and India, allowing Russia's oil exports to remain stable.

"If further sanctions on Russian energy exports come into place, then the most likely scenario is a gradual phase-out of Russian oil in Western markets that will take several months to complete," the company said, adding that if an embargo is put in place, Russia will be forced to cut production because it lacks storage capacity for extra crude volumes.

  • energy prices
  • Russia
  • Gas prices
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Russia & NATO

Russia & NATO

As the Draconian Western-led sanctions on Russia exacerbate the economic crisis worldwide, and as Russian troops gain more ground despite the influx of military aid into Ukraine, exposing US direct involvement in bio-labs spread across Eastern Europe and the insurgence of neo-Nazi groups… How will things unfold?

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