Western sanctions push Russian oil and energy revenue to lowest point since 2020

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Western sanctions have pushed Russian oil and energy revenues to their lowest point since August 2020, according to data published Friday by Russia’s Ministry of Finance, highlighting the early successes of the Group of Seven-backed Russian oil price cap that came into force late last year.

Russia’s primary Urals grade crude traded at an average of $49.48 per barrel for the month of January, down 42% compared to January 2022, according to the country's data.Meanwhile, prices for international benchmark Brent crude remained largely unchanged during the same period, trading around $82 per barrel as of early Friday afternoon.

Though Russian crude prices are trading well below the $60 cap set by Western leaders in December, higher transportation costs, longer shipping distances, and the steep discounts it has been forced to offer to new buyers in China and India have sharply cut into its revenue. This caused its January earnings to fall 54% compared to December 2022, according to data provided by Russia's finance ministry.

Russia has also kept its barrels on the market, alleviating early fears that the price cap would cause it to halt or significantly curtail its crude exports.Russian Deputy Prime Minister Alexander Novak said Wednesday that Moscow's oil production and energy exports remain “stable” despite efforts by G-7 leaders and other Western allies to cut into the Kremlin's war chest.

Novak added that Russian exports are stable, with rising demand from China, coupled with this week's OPEC+ decision to leave production targets unchanged, expected to send Urals prices higher.

 

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Western sanctions push Russia's energy revenues to lowest since 2020Russia's monthly budget revenues from oil and gas fell in January to their lowest level since August 2020 under the impact of Western sanctions on its most lucrative export, Finance Ministry data showed on Friday. at last Earth pimple.
Source: Reuters - 🏆 2. / 97 Read more »