Russia Says It Will Have 'Significantly' More Energy-Export Profits

Russia Says It Will Have ‘Significantly’ More Energy-Export Profits

  • Russia said it expects “significantly” more profits from its energy exports this year.
  • The country has been hit with sweeping international sanctions over its invasion of Ukraine.
  • Foreign Minister Sergey Lavrov said Russia had alternative markets for its oil products.

Russia says it is expecting a jump in profits from energy exports this year amid a surge in prices.

“Considering the price level that has been established as a result of the West’s policies, we have suffered no budgetary losses,” Russian Foreign Minister Sergey Lavrov told a Bosnian Serb TV station Saturday, according to an official transcript.

“On the contrary, this year we will significantly increase the profits from the export of our energy resources,” Lavrov continued, per a Reuters translation.

Russia has been hit with intensifying sanctions since it invaded Ukraine — but Moscow could still rake in $800 million a day from oil and gas revenue this year amid soaring energy prices, according to a Bloomberg Economics report last week. The gains in energy prices could bring sales of Russian oil and gas to $285 billion this year, Bloomberg forecasts. That’s 20% higher than the country’s $235.6 billion takings from oil and gas in 2021.

President Vladimir Putin’s government has been holding up so far as oil prices have risen about 50% this year and are trading at 13-year highs amid tight supplies that predated the war, with a strong recovery in demand as the coronavirus pandemic eased. The war in Ukraine adds to supply concerns as heavily sanctioned Russia is a major energy producer.

On May 30, the European Union agreed to slash 90% of its imports of Russian oil by the end of this year — but some countries in the group, including Germany, Europe’s largest economy, continue to be heavily dependent on Russian gas.

Countries like China and India are also buying discounted Russian oil, further undermining international sanctions.

“Oil, generally speaking, is not subject to politics, there is a demand for it … we have an alternative sales markets, where we are already increasing sales,” Lavrov said, per Reuters.

Leave a Comment

Your email address will not be published.