Russia’s continued high earnings from its oil and gas industry reveal the difficulties faced by Western countries in trying to reduce the nation’s income from oil. Credit: murathakanart/Shutterstock.

Russia’s hydrocarbons sector is baring the weight of international sanctions placed upon it, with the nation reporting that oil and gas budget revenues jumped by more than 73% in the January–May 2024 period compared with the same time last year.

According to data on Monday from Russia’s Finance Ministry, between January and May 2024, revenues for the Russian federal budget from oil and gas reached Rbs4.95trn ($55.7bn).

“In line with parameters of the socioeconomic outlook, a steady surplus of oil and gas revenues above their base level is also expected in months to come,” local news agency TASS reported, citing a statement from the ministry.

The statement revealed that non-oil and gas revenues also rose by 34% in the January–May 2024 period compared with the same period in 2023.

The nation’s oil revenues, the lynchpin of its economy, have been gradually rising since the turn of the year as it finds ways to bypass the international sanctions placed upon it since its invasion of Ukraine.

Russia is finding buyers willing to risk purchasing its crude and refined petroleum products, particularly in Asia, and has been using a shadow fleet of tankers that operate outside the regulations of the official maritime sector.

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In April alone, the country’s oil and gas revenues hit Rbs1.23trn, reported the finance ministry, nearly double the oil income for the same month of 2023.

Bloomberg has attributed some of the growth to the weaker Russian currency and the higher price of Russia’s flagship Urals crude, as oil prices rise in markets around the world.

Russia’s continued high earnings from its oil and gas industry reveal the difficulties faced by Western countries in trying to reduce the nation’s income from oil, despite the increasing number of sanctions since the turn of the year.

Just last week, it was reported that Russia’s annual oil proceeds almost doubled in May, according to Bloomberg calculations.

Oil-related taxes rose to Rbs632.5bn just last month, based on Finance Ministry data. Meanwhile, total oil and gas proceeds increased by 39% on the year to Rbs793.7bn, the ministry added.