Russia’s oil revenue plunges under international sanctions

Russia’s oil revenue plunges under international sanctions

The port of Novorossiysk on the Black Sea. LUCIE GODEAU / AFP

The International Energy Agency reports that Russia made $3 billion less in February than in January.

Russia’s oil revenues plunged 42% year-on-year in February under the effect of G7 and European Union sanctions, even though the country is more or less still marketing the same volume, the agency said on Wednesday. International Energy Agency (IEA). “We estimate Russia made $11.6 billion in February, compared to $14.3 billion in January and almost $20 billion a year earlier.“, underlines its monthly report on oil.

Gold “a year after Russia invaded Ukraine, the country is still sending about the same volume of oil to world markets. This shows that the G7 sanctions regime has not reduced the global supply of crude oil and petroleum products, while limiting Russia’s ability to generate export revenue“.

Exports down 500,000 barrels per day

Russian oil production was still in February at roughly the same levels as before the conflict. Exports fell by 500,000 barrels/day to 7.5 million barrels (mb/d). Over the past year, the 4.5 mb/d of Russian oil formerly destined for the EU, North America and other OECD members have largely found other recipients.

Now Russian oil goes largely to Asia, especially India, and to a lesser extent in China, which benefit from the discounts granted. It thus represented in February approximately 40% and 20% respectively of the crude oil imported by India and China; the two countries have between them absorbed more than 70% of the stocks exported by Moscow, according to the IEA. For other petroleum products, excluding crude, Africa, Turkey and the Middle East are also recipients.

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