A recent analysis from the Centre for Research on Energy and Clean Air reveals that Russia's oil and gas export revenues have dropped significantly over the past year, with an estimated decline of 27%.
An analysis from the Centre for Research on Energy and Clean Air highlights that Russia's earnings from oil, gas, coal, and refined oil exports have decreased to 193 billion euros (approximately 1.442 trillion kroner) over the last twelve months. This drop represents a substantial 27% decline in revenue compared to the previous year. Despite the ongoing sanctions imposed on Russia since the beginning of the war in 2022, the volume of oil exports has not significantly reduced, though Russia has been compelled to sell its oil at lower prices.
The financial impact of these sanctions is increasingly being felt within Russia's energy sector, as the country continues to face challenges in maintaining its typical levels of revenue amidst the geopolitical tensions. The study emphasizes that even though the volume of oil exports remains relatively stable, the dramatic price reductions due to sanctions are eroding Russia's income, which is critical for its economy.
These findings raise concerns about the long-term viability of Russia's economy, which has heavily relied on energy exports for funding government operations and social services. The report suggests that sustained decreases in oil revenue could force Russia to rethink its economic strategies and possibly reconsider its approach to the ongoing conflict in Ukraine, as maintaining financial stability becomes more challenging.
