With sanctions and fluctuating energy prices, Russia is losing revenue. How much is Russia’s current account surplus shrinking due to reduced oil and gas sales?
Russia has recorded its smallest current account surplus in more than a year, as new restrictions on its oil exports endanger what has become a crucial source of hard currency for the Kremlin after the invasion of Ukraine.
So are the sanctions working? What the latest data on Putin’s coffers tell us about energy revenues.
Russia loses valuable energy export revenue
The current account surplus - roughly the difference between exports and imports - fell to $31.4 billion in the fourth quarter, down from $48 billion in the previous three months, according to preliminary central bank data released Tuesday.
For the full year, the surplus was lower than the central bank’s latest forecast. It hit a record $227.4 billion, with cash from exports of oil, gas and other commodities flowing in while imports remained depressed due to sanctions.
However, by imposing sanctions including import bans and a cap on sea shipments of Russian oil, Western countries are now aiming to reduce the flow of petrodollars to the Kremlin.
Bloomberg Economics points out that: “the drop in global energy prices, exacerbated by an increase in the Russian Ural discount, has wiped out $20 billion of revenue from exports. The balance is set to weaken further this year, challenging the authorities’ efforts to stabilize the ruble and inflation.”
Original article published on Money.it Italy 2023-01-17 15:42:32. Original title: Quanto sta perdendo la Russia dall’export dell’energia?
