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16 Jan, 2023 12:59

Russian energy revenues soaring – official

Oil and LNG exports surged 15% last year, according to Deputy PM Novak
Russian energy revenues soaring – official

Russian energy exports grew last year despite Western sanctions, adding billions in revenue to its budget, Deputy Prime Minister Aleksandr Novak said at a government meeting on Monday.

According to the official, Russian oil exports in 2023 were up 7%, while liquefied natural gas (LNG) sales rose 8%. Oil production grew 2% against 2021 volumes, totaling 535 million tons.

As for the oil industry, we have a positive result for last year, despite the actions of ‘unfriendly’ countries and sanctions restrictions,” Novak noted.

Overall, Russia’s revenue from energy exports in 2022 increased by roughly 28%, or 2.5 trillion rubles ($36.6 billion), from 2021.

Despite all the difficulties, the fuel and energy sector demonstrated stable operation last year, resisting external challenges [and] ensuring energy security of our country and the realization of export potential, including for the formation of a significant part of the Russian budget,” Novak stated.

Exports of pipeline gas, however, dropped by nearly a third in 2022 due to Western sanctions and to the September sabotage the Nord Stream 1 pipeline, which became inoperable after being blown up.

Russia’s Finance Ministry recently said it expects the country's oil and gas revenues to drop in January by over 54 billion rubles ($790 million) due to the EU embargo on Russian crude and to the accompanying G7 price cap, which came into effect in December.

According to calculations by the Helsinki Research Center, the price cap is already costing Russia some $172 million daily. Russian President Vladimir Putin last month banned shipments of oil and petroleum products to buyers that mention the cap in their contracts.

Moscow repeatedly said it was ready to slash production if the need arises, but will not cooperate with countries that joined the price-cap coalition.

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