Russia’s budget revenues are growing due to energy trade, although the country’s GDP is weakening. EU countries have paid Russia € 28 billion in energy since the start of the war. The graphics show the situation in the energy trade.
The President of Russia Vladimir Putin the war stock is likely to only grow at least this year despite Western sanctions and war. Thus counts (you switch to another service) Bloomberg News Agency.
According to it, Russia’s energy revenues will increase by more than a third. Russia will earn nearly $ 300 billion in energy exports by Bloomberg economists by the end of the year if the current pace of trade continues.
The increase in budget revenues is due to the sharp rise in energy prices. According to the Bank of Finland, Russia’s public revenues will grow even more clearly than estimated inflation.
For example, now in April, Russia expects to earn more than eight billion euros more than expected from rising oil prices.
Although Russia’s oil production has declined in volume in recent weeks, rising prices guarantee Putin a stable cash flow. By the end of last year, the price of Russian oil has increased by a third.
The country’s gross domestic product is shrinking, economic activity is weakening, the economy is facing a recession and inflation is accelerating, but sanctions so far have not been able to cripple the economy completely.
The economy is based on public spending. The state can afford to support the economy.
In practice, Western sanctions bite into everything but the Russian economy. At the same time, it is becoming increasingly dependent on energy.
The EU plans to reduce its use of Russian natural gas by two-thirds this year. So far no change has taken place. For example, the amount of natural gas coming through Ukraine will be at the beginning of the year increased (switch to another service).
There are buyers in Asia
To make sanctions more effective, the United States warns India and China, for example, of supporting Putin’s military operation and buying Russian energy.
China, the largest buyer of Russian oil, seems to have heard American concerns. The state’s oil refineries there have recently avoided concluding new oil agreements with Russia According to Reuters (you’re switching to another service).
The United States, Australia, Britain and Canada have decided to boycott Russian oil, while the EU has not. However, some of the local oil companies – such as Neste – have themselves announced their withdrawal from Russian oil.
Russian crude oil, which normally ends up in western refineries, is now going to Asia, where buyers are taking advantage of big price reductions. On the other hand, oil companies are also beautifying their withdrawal from Russia. For example Shell thinks (you’re switching to another service) oil is not “Russian” if less than half, or 49.99 percent, of the oil blend comes from Russia.
EU countries decided on Thursday to block coal imports later this year, but that is not the time for Russia. The graphics below show that banning the oil trade would have by far the biggest impact.
EU foreign ministers are considering ending oil imports next week.
You can discuss the topic until 11 p.m. Saturday night.