Russia’s oil and gas revenue could double this month pocketing a staggering $14 billion in April 2024 alone. The surge in profits comes despite the US pressing economic sanctions against Russia for invading its neighboring country Ukraine.
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The country’s oil and gas revenue had slumped drastically by 23.9% last year compared to 2022 due to the sanctions. However, it sidelined the US sanctions this year selling oil at cheaper prices to Europe and other developing countries.
Top oil-exporting country Saudi Arabia had purchased oil at discounted prices from Russia and laundered it all over Europe. India had also procured cheap Russian oil and saved nearly $7 billion in exchange rates. China has also been among the top purchasers of Russian oil since 2022 after the US pressed economic sanctions.
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Russia To Pocket $14 Billion Profits in April 2024, Double Its Oil & Gas Revenue
A recent report from Reuters estimates that Russia could pocket $14 billion in profits from oil and gas in April 2024 alone. That’s doubling profits from last year despite the US sanctions. The country had pocketed $7 billion from oil and gas revenue in April 2023 and will reach $14 billion in April 2024, according to the estimates.
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“For 2024 as a whole, the government has budgeted for federal revenue of 11.5 trillion roubles from oil and gas sales, up 30% from 2023 and reversing that year’s 24% decline owing to weaker oil prices and sanctions-hit gas exports,” read the report.
The development indicates that the US sanctions have not weakened Russia completely as its oil sector is growing. It has done little to nothing to keep its economy from rising amid geopolitical tensions.
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Russia is navigating its oil economy and keeping it afloat despite the White House pressing sanctions. The move is giving hope to other developing countries that the US sanctions might not necessarily work if the right policies are put into place.