Signs that Russia's energy industry is weathering the storm of Western sanctions

A Russian oil field (Photo: Reuters).

Russian Deputy Prime Minister Alexander Novak revealed that Moscow's earnings from oil and gas exports were $100 billion this year, almost the same as the revenue recorded in 2021, before the conflict in Ukraine broke out.

More than half of Russia's total export revenue comes from the energy sector, Novak told Rossiya 24 , stressing that oil and gas sales continue to ensure stable income for the country's budget.

According to Mr. Novak, Russia's energy sector contributes "about 27% to gross domestic product (GDP)", and oil and gas revenues account for "almost 57% of our country's total export revenue".

He also said that half of Russia's energy exports this year have gone to China, while India's share has increased to 40% in the past two years.

Meanwhile, Europe's share of Russia's crude oil exports has fallen by 90% over the past two years, from 40-45% in 2021 to around 4-5% this year, Novak added.

Russian energy companies have been diverting supplies to Asia after exports to the EU fell amid Western sanctions imposed over Moscow’s military campaign in Ukraine. In addition, the Nord Stream gas pipeline has been hit by suspected sabotage, affecting Russian gas exports to Europe.

The G7 and EU countries last year capped the price of Russian seaborne oil at $60 a barrel. Similar restrictions were introduced in February on Russian oil product exports. The measures are intended to significantly reduce Moscow’s energy revenues without disrupting oil and gas market supplies.

However, Russia claims that these measures are ineffective and that it will not supply energy to countries that impose price caps on its products.

On November 14, Financial Times quoted Western officials as saying that "not a single barrel of Russian oil has been sold for less than $60" in recent months.

Energy revenues are seen as one of the factors that can help Russia gain the economic potential to maintain the war of attrition when they have been imposed with 17,500 sanctions, becoming the most embargoed country in the world.

Source: https://dantri.com.vn/the-gioi/dau-hieu-nganh-nang-luong-nga-vuot-qua-bao-trung-phat-cua-phuong-tay-20231227212452422.htm