While the Twenty-Seven are still unable to find a consensus on the joint embargo project on Russian oil – because of its blocking by Hungary – Russia is still drawing record revenues from its sales of hydrocarbons largely free from the sanctions imposed after its invasion of Ukraine.
This year, hydrocarbon exports are expected to bring in some 1 trillion rubles to Russia, or 13.7 billion euros. Part of this money will allow Moscow to continue its offensive in Ukraine. The announcement comes from Russian Finance Minister Anton Silouanov.
Reserves are falling
Before the war, sales of oil and gas helped to replenish the foreign exchange reserves of the Russian Central Bank. These reserves, a pillar of the Russian economy, then peaked at more than 643 billion dollars. But since then, part of these reserves had been frozen abroad, and what remains continues to decline.
However, Moscow needs these resources to support its national currency, the ruble, but also to pay its expenses. This year, the money from hydrocarbon exports should be completely spent, the minister said.
A considerable windfall
Revenues from oil, refined products and gas bring considerable windfall to Russia: they accounted for more than a third of its budget in 2021.
►Read: EU tightens sanctions against Russia: “The idea is to dry up financial flows”