Russia Says It Received 3.6 Billion Less Than It Forecast From March Oil And Gas Sales Suggesting The Ukraine War And Western Sanctions Hit Exports

Russia said Tuesday that government revenue from energy sales in March was $ 3.6 billion less than expected. Russia forecast energy revenues of 790 billion rubles ($ 9.4 billion), but received about 488 billion rubles, a loss of 38%. Western nations have distanced themselves from Russian energy supplies in the wake of the invasion of Ukraine.

Russia made significantly less money than expected from oil and gas sales in March, suggesting the Kremlin underestimated the impact of the war on Ukraine. Revenue from oil and gas sales in March was 302 billion rubles ($ 3.6 billion), or 38%, lower than the Russian Finance Ministry forecast on March 3, according to ministry figures released on Tuesday. . Russia is the world’s leading oil supplier and exporter of natural gas, and Europe typically receives about 40% of its gas from Russia. However, European and other Western nations have moved away from Russian supplies in the wake of the invasion of Ukraine. Russia’s finance ministry forecast on March 3 that the country would receive about 790 billion rubles in oil and gas sales in March. The actual number was closer to 488 billion rubles. The finance ministry noted lower-than-expected gas exports in March and changes to energy tax rules. He also said that in February, revenues from oil and gas were 216.4 billion rubles lower than expected. However, he said he expects to earn 798.4 billion rubles in additional revenue from energy sales in April. President Joe Biden has pledged to ban Russian energy imports, and the European Commission has said it could cut EU demand for Russian gas by two-thirds before the end of the year as part of a plan to diversify supplies. The United States has offered to ship more liquefied natural gas to its allies to help squeeze Russian exports. Over the weekend, Lithuania became the first EU country to completely cut off Russian gas imports, Energy Minister Dainius Kreivys said. The story goes on In 2021, just over a quarter of Lithuania’s gas supplies came from Russia, according to Amber Grid, the country’s pipeline operator. Kreivys said the country would close the gap with liquefied natural gas imports from the United States and Norway, according to Bloomberg. Russian President Vladimir Putin has said Russia is working to force “unfriendly countries” to pay for their gas in rubles, which European Commission President Ursula von der Leyen said would be a “clear breach of contract.” And an attempt to circumvent sanctions imposed by the West. Shortly after the outbreak of the war, Germany suspended plans for the Nord Stream 2 pipeline, which is designed to transport gas between Russia and mainland Europe. On Monday, Germany announced that it had taken control of a local unit of Gazprom. Shell had earlier said it was withdrawing from its joint ventures with Gazprom and related companies, while BP said it was relinquishing its 20% stake in Russian state-owned oil company Rosneft. Western sanctions imposed on Russia could eliminate 15 years of economic growth in the country and send inflation soaring. Read the original article in Business Insider

title: “Russia Says It Received 3.6 Billion Less Than It Forecast From March Oil And Gas Sales Suggesting The Ukraine War And Western Sanctions Hit Exports " ShowToc: true date: “2022-11-25” author: “Jill Surgeon”