- Russia's energy trade likely boomed last month despite sanctions.
- Oil and gas sales were on track to reach $9.4 billion, per calculations from Reuters.
Russia's oil and gas business is set for a windfall this month.
According to Reuters, Russia's oil and gas revenue is set to surge to $9.4 billion in June, up roughly 50% from the $6 billion it took in from oil and gas sales in June of last year. That's a big boost for the Kremlin, given that oil and gas revenues have made up as much as half of the nation's total revenue for the past 10 years.
The increase in revenue has largely been spurred by declining subsidies to Russia's oil refineries, which fell $60 billion from last month. That may encourage refineries to export oil and gas overseas for a higher price, as opposed to keeping oil and gas for domestic sales.
The revenue jump is also a product of Russia's ability to navigate around Western sanctions, despite harsh restrictions on its oil and gas trade.
Western nations have imposed bans on Russian energy imports and $60 price cap on Russian oil. Yet, Moscow has been able to trade its energy products under the radar using a variety of methods, including utilizing a shadow fleet of oil tankers and offloading its oil to its key trading partners like China and India.
The Bank of Russia, though, has admitted sanctions pose an obstacle to its energy trade. Moscow's economy also appears to be feeling the effect of sanctions and the mounting costs of its war against Ukraine. Russia has set aside a record military budget this year. Civilians, meanwhile, are being pressured by high inflation and double-digit interest rates.