Due to Western sanctions and the imposition of a price cap, Russia’s oil and gas export revenues in January 2023 fell by almost 40% compared to January last year, reports Reuters citing data from the International Energy Agency (IEA) on Tuesday, February 28.
In January this year, Russia’s oil and gas export revenues totaled $18.5 billion, down 38% from the $30 billion Moscow received in the month before the invasion. of Ukraine, writes Reuters.
According to IEA Executive Director Fatih Birol, the reason was Western sanctions against Russian energy exports. “We expect this decline in oil and gas revenues to be more pronounced in the coming months. And even more pronounced in the medium term due to lack of access to technology and investment,” Birol told Reuters. , pointing out that due to the “Big Seven (G7) price cap, Russian Urals oil is being sold at a steep discount to Brent oil.
The Kremlin, which earned about 11.6 trillion rubles (146 billion euros) selling oil and gas last year, was forced this year to start selling international reserves to cover the budget deficit, notes Reuters.
Research: Russia sold oil above the cap in December
The EU embargo on offshore supplies of Russian petroleum products entered into force on February 5. Since December 5, 2022, the embargo on Russian oil supplies to the EU has been in force. At the same time, the European Union and the G7 countries have set a ceiling price for Russian oil sold to third countries at 60 dollars per barrel, and for Russian oil products at 45 and 100 dollars per barrel, depending on the type of raw material.
Bloomberg previously reported citing a study by a group of scientists that since Russian oil prices capped on December 5, it has averaged around $74 a barrel, about a quarter above the $60 per barrel threshold. barrel. The results “will be greeted with dismay by governments who say the decision to cut off the Kremlin’s access to petrodollars was a great success,” Bloomberg said.
Researchers say about half of Russia’s oil supplies are transported by the state-owned Sovcomflot or “shadow fleet” of tankers. Thus, these deliveries are not affected by the price cap, writes Bloomberg. The impact of the embargo and price cap can be judged by statistics from January, which scientists have yet to analyze, said study co-author Oleg Itskhoki, a professor at the University of California to Los Angeles at Important Stories.