Russia’s Economy Ministry Expects $337.5B in Energy Export Revenue

Russia’s Economy Ministry Expects $337.5B in Energy Export Revenue
040928-N-7034S-001 Arabian Gulf (Sept. 28, 2004) – The guided missile cruiser USS Mobile Bay (CG 53) conducts patrols near to the Iraqi Al Basra Oil Terminal (ABOT) in the Northern Arabian Gulf. Mobile Bay is a part of USS Essex (LHD 2) Expeditionary Strike Group Three (ESG-3) currently on deployment in support of Operation Iraqi Freedom (OIF). U.S. Navy photo by Photographer’s Mate 2nd Class Samuel W. Shavers (RELEASED)

According to a document from the Russian economy ministry, higher gas export volumes coupled with increasing gas prices will increase Russia’s energy export revenue to $337.5 billion this year, up 38% from 2021, Reuters reported.

If that occurs, the increase in revenue will aid in stabilizing Russia’s economy in the face of waves of Western sanctions.

It will provide Vladimir Putin money to pay for military expenditures or to raise wages and pensions at a time when the economy is in a recession and inflation is lowering living standards.

However, economists argued that the increase in oil profits only partially offsets the harm that sanctions have caused to the wider economy.

“The impact of sanctions on Russia’s economy is very uneven. In some sectors, it has been catastrophic, such as the car industry. The oil sector is relatively unscathed for now,” said Janis Kluge, senior associate at the German Institute for International and Security Affairs.

According to a ministry report, energy export revenues would decline to $255.8 billion in 2020 but will still be more than the $244.2 billion forecast for that year.

The average gas export price will more than double this year to $730 per 1,000 cubic meters, before gradually falling until the end of 2025, according to the forecast.

Overall, according to predictions from the economy ministry obtained by Reuters earlier this week, Russia’s economy is handling the sanctions better than Moscow first feared and will shrink less than anticipated.

 

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