SANCTIONS PUSH RUSSIA’S ENERGY REVENUES TO LOWEST LEVEL SINCE 2020

Fri 03 February 2023:

Russia’s monthly budget revenues from oil and gas fell in January to their lowest level since August 2020 under the impact of Western sanctions on Russian exports, finance ministry data shows.

Monthly tax and customs revenue from energy sales was down 46 percent in the space of a year, according to the ministry.

Moscow relies on its multibillion-dollar earnings from oil and gas sales to fund its budget spending, and has been forced to start selling down some international reserves to cover the shortfall.

“Further Imbalance”

Meanwhile, Kremlin warned Friday of a “further imbalance” to global energy markets ahead of an EU embargo on Russian oil products due to come into force this weekend.

An EU-wide ban on Russia oil products — such as diesel, gasoline and jet fuel, is set to come into effect on Sunday alongside a G7 price cap on these products.

It will expand on an EU embargo on seaborne deliveries of Russian crude oil that was introduced in December last year.

“Naturally this will lead to a further imbalance of the international energy markets, but we are taking measures to hedge our interests against the risks associated,” Kremlin spokesman Dmitry Peskov told reporters.

The European Union, G7 and Australia have already imposed a price ceiling on Russia’s oil exports.

Russia has said the oil price cap will not affect its military campaign in Ukraine and in response banned oil sales to countries and companies that comply with the measure.

SOURCE: INDEPENDENT PRESS AND NEWS AGENCIES

___________________________________________________________________________________________________________________________________

FOLLOW INDEPENDENT PRESS:

TWITTER (CLICK HERE)
https://twitter.com/IpIndependent