Russia’s Oil and Gas Sector Revenues Grow by 71.2%

Europe's share in Russia's oil exports fell from 50 percent to 4-5 percent

Aleksandr Novak

The sanctions imposed by the West on Moscow crude oil and gas, the so-called “price ceiling,” Russia’s voluntary cuts in hydrocarbon production and exports under OPEC+ agreements – all these factors have little impact on the situation in Russia’s oil and gas industry. In the first two months of 2024, Russia’s oil and gas sector revenues rose 71.2% year-on-year to 1621 billion rubles (about $16.8 billion). In February alone, Russia’s oil export revenues exceeded $10 billion.

Russia’s Finance Ministry said on Saturday, March 9 that “over the indicated period, revenues from non-energy-related sectors also increased by 53.5%, rising to 3405 billion rubles (about $35 billion) compared to the same period in 2023.”

Russia ended 2023 quite satisfactory in terms of oil exports that were almost entirely diverted to China and India, after which revenues returned to the same level as in 2021. According to Alexander Novak, Russia’s deputy prime minister in charge of energy, Russia currently sells about 45-50% of its oil to China and another 40% to India. Nevertheless, the exports of Russian oil, gas, and oil products to European countries amounted to 29.26 billion euros in 2023. “While we used to supply Europe with 40-45% of total oil and oil product exports, this figure has dropped to 4-5% in 2023,” Novak said.