Russia’s Revenues From Gas Still High Despite Supply Cuts To Europe

Russia has to earn more than $100 million every day from the gas it sells to Europe, despite cut supplies to major EU consumers in the last week, according to Independent Commodity Intelligence Services (ICIS) data quoted by Bloomberg

Rising natural gas prices mean that Russian revenues from gas exports are believed to be equal to last year’s revenues, when Moscow did not restrict gas flows to Europe and was not (yet) on a collision course with the EU.

“It is shocking to see that, despite Gazprom’s 75% cut in daily supplies to Europe, daily receipts are still in line with where they were a year ago, and certainly higher than pre-Covid times,” Tom Marzec-Manser, chief of gas analysis at ICIS, told Bloomberg.

Over the past week, Russia has significantly cut supply to major European consumers, including its largest customers, Germany and Italy, despite their buyers boasting Putin’s demand to open accounts in rubles at Gazprombank to process the payments. like Russia wanted until. In addition, annual maintenance at Nord Stream is coming up and pipeline deliveries will come to a complete halt for two weeks in July, leaving Europe further struggling to fill gas storage sites to sufficient levels for the winter.

Despite the EU embargo on Russian overseas oil, due to take effect by the end of the year, and the drastically reduced gas supply through pipelines, Russia continues to benefit from high oil and gas prices. Despite Western sanctions designed to hurt Russia’s oil revenues and war coffers, Moscow is still getting many extra billions of dollars in oil and gas revenues.

In June alone, Russia expects to receive as much as $6.37 billion in additional oil and gas revenues in June, the Treasury Department said earlier this month, as prices of energy commodities have soared since Russia’s invasion of Ukraine.

By Tsvetana Paraskova for Oilprice.com

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