Russia is poised to make nearly $ 321 billion in energy exports this year – up more than a third from last year, according to Bloomberg. In April alone, Russia expects $ 9.6 billion more in energy sales than originally projected due to high prices. This is partly due to the fact that the European Union is still heavily dependent on Russian gas and has so far refused to suspend shipments due to fears of an energy crisis. As a result, revenues from energy exports have given Russia a major source of revenue despite the escalation of sanctions aimed at crippling its economy. “Oil revenues are a big part of Moscow’s budget. It is a key source of funding for [President Vladimir] Putin’s invasion of Ukraine. “Cutting Russia’s oil revenues could hasten the end of the conflict,” said Michael R. Strain, a researcher at the American Enterprise Institute, in a recent blog post. The European Union is heavily dependent on Russian energy. A REUTERSA worker drills in the Suzunskoye oil field owned by Rosneft, north of the Siberian city of Krasnoyarsk.REUTERS British energy giant Shell PLC – which was widely criticized in the early days of the invasion for buying a heavily discounted Russian oil shipment – is now selling a so-called “Latvian blend” of diesel to circumvent control, according to Bloomberg. The term “Latvian mixture” refers to blended diesel where less than 50% of the contents of each barrel come from Russia, which means that the product is not classified as of Russian origin. Bloomberg reports that Shell recently adjusted the terms and conditions of the contract to allow the use of mixed diesel. Shell did not immediately return The Post’s request for comment on the apparent use of the so-called “Latvian mix”. Oil and gas exports are the lifeblood of the Russian economy – accounting for about 40% of the country’s annual revenue. So far, economic sanctions, although severe, have left the Russian energy sector largely untouched. The sale of Russian oil and gas remains legal in Europe, with companies free to take advantage if they can tolerate a possible public backlash over their dealings with the Kremlin. The continuing flow of Russian oil and gas has not escaped the attention of Ukrainian officials, who have strongly pressed Europe to impose an import ban. Oleg Ustenko, financial adviser to Ukrainian President Volodymyr Zelensky, said Russia was earning $ 1 billion a day from oil exports – money used to finance its invasion. In April alone, Russia expects $ 9.6 billion more in energy sales than originally projected due to high prices.REUTERS Moscow, Russia, Thursday, April 7, 2022. AP “There is no doubt that economic and other sanctions have weakened the Russian economy and its ability to supply some of the materials needed to continue its war in Ukraine,” said Patrick Honohan, a senior fellow at the Peterson Institute for International Economics. blog. post last week. “But sanctions can not cripple the economy as long as they do not interrupt the flow of export revenues, which finance the budget and also ensure the continued availability of foreign exchange to pay for necessary (and unapproved) imports,” he added. . The foreign ministers of Ireland, Lithuania and the Netherlands have said the European Union is considering banning Russian oil for the next round of sanctions – but no final decision has been made yet. With Post cables
