Russia’s oil and gas revenues fell by 46% in January
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In January, Russia’s revenues from the sale of oil and gas decreased by 46% compared to the same period last year, according to the Ministry of Finance of Russia.
According to the department, oil and gas revenues in January amounted to 426 billion rubles. The Ministry of Finance attributed the decline to a drop in prices for Russian Urals oil and a reduction in gas exports.
At the beginning of January, the Bloomberg agency, with reference to the profile agency, reported that Urals oil is traded at half of world prices – less than 38 dollars per barrel. This is even lower than the $60 price ceiling that Western countries set in December in response to Russia’s invasion of Ukraine. However, the real price at which Russia sells oil can be higher.
According to Reuters estimates, in 2022 the supply of Russian gas to Europe decreased by almost 46% compared to the previous year and reached the lowest values since 2000. After its invasion of Ukraine, Russia stopped supplying gas to a number of European Union countries, others refused Russian gas themselves. Also, the decrease in exports was affected by the accident at “Severny Streams”.
Non-oil and gas revenues of Russia in January amounted to 931 billion rubles, having decreased by 28% by January 2022. The Ministry of Finance notes that this happened “mainly due to the reduction of domestic VAT and profit tax revenues.”
At the same time, budget expenditures in January increased by almost 59% and reached 3.1 trillion rubles. In the Ministry of Finance, this is connected with the operative conclusion and advance of contracts.
Thus, Russia’s budget deficit in January amounted to 1.76 trillion rubles. This is a record since 1998, reports Bloomberg. Everything is going according to plan, the Ministry of Finance claims.
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