Due to the war russia’s oil and gas revenues have collapsed
russia is forced to admit that the era of superprofits from the oil and gas sector has come to an end.
▫️The russian ministry of finance stated that oil and gas revenues will decline both in the medium and long term. According to the ministry’s calculations, this year the share of oil and gas revenues in the budget, which was 50% a few years ago, will drop to 23% and continue to fall in the coming years.
▫️Officially, this is explained by the depletion of low-cost hydrocarbon reserves, avoiding the topic of the war against Ukraine. However, it is precisely the war and sanctions that have hit oil and gas revenues the hardest.
Analysts note that this year russia was forced to trade oil at the edge of profitability or even at a loss. Having lost Western markets due to the war, russia is forced to sell oil to India and China with huge discounts, often about 50% off the price.
Unwilling to end the war against Ukraine, the kremlin is destroying the economic foundation of russia of recent years with its own hands.
