Oil & Gas

In April 2024, Russia's oil revenues doubled compared to the same month a year earlier, reaching $11.5 billion. This increase was driven by higher oil prices and a weaker ruble. Despite Western sanctions and a price cap on Russian oil, efforts to reduce Russian revenue have been challenging.

Data from the Russian finance ministry indicated that oil and gas revenues totaled $13.5 billion (1.23 trillion Russian rubles) in April. This marked nearly double the oil income for the Russian budget compared to April 2023, according to estimates by Bloomberg.

The weaker Russian ruble and higher prices for Russia’s flagship Urals crude, driven by international oil price increases, contributed to higher revenues from oil-related taxes and total oil and gas sales. Bloomberg's calculations suggest that the Russian budget received about $11.55 billion (1.053 trillion rubles) in oil-related taxes in April 2024, up from $5.45 billion (497 billion rubles) in April 2023.

These doubled oil revenues underscore the challenges faced by Western countries in reducing Putin's oil income, despite efforts such as the price cap on Russia’s oil and increased sanctions enforcement in recent months.

Reuters had also estimated that higher oil prices would double Russia’s oil and gas revenues in April compared to the same month last year, with Russia expected to earn $14 billion (1.292 trillion Russian rubles) from oil and gas in April, double the $7 billion (648 billion rubles) earned in April last year.

Despite a 23.9% slump in oil and gas revenues in 2023 compared to 2022 due to lower oil prices and reduced pipeline gas exports, Russian crude continues to find buyers in China and India, while Russian LNG, not sanctioned by the EU or the U.S., is still being delivered to European ports. European intake of LNG cargoes, including from Russian facilities, has increased in the past two years.