Russian energy revenues for the first four months of 2023 fell to $27.3bn, down by more than a third year over year, underscoring the impact of Western restrictions on Moscow.
“Russia’s non-energy revenues are on track for growth as planned, with the potential for a small surplus by year-end, but there is a problem with energy revenues,” Russia’s Finance Minister Anton Siluanov said in a public video conference with President Vladimir Putin on Wednesday, the Financial Times reported.
Sweeping sanctions and boycotts have hit its essential energy trade since it invaded Ukraine. A G7-led coalition has imposed a $60 per barrel price cap on Russian seaborne crude.
Energy revenues for the first four months of 2023 plummeted to 2.2 trillion rubles or $27.3 billion -- down 35.5 percent on the previous year’s January-April revenue of $76.9 billion.
According to the European economic think tank Bruegel, Russia seems to have few problems finding willing buyers for its oil. Purchases by China and India have surged from 21 million tonnes in 2021 to 68 million tonnes last year. Even so, the two nations demand enormous discounts for their Russian oil purchases.
Russia’s flagship Urals crude is currently trading at around an $18 per barrel discount to benchmark Brent crude oil. The price cut has hit Russia’s revenues from oil exports; however, Putin called the country’s market situation “stable” on Wednesday.