Russia’s oil revenue is falling – IEA

Russia’s oil export earnings fell in October from previous highs due to lower global oil prices and US sanctions against ships that breach Western thresholds. However, earnings remain near annual highs. This is stated in the report of the International Energy Agency (IEA).

It was noted that last month, Russia’s revenue from the export of crude oil and petroleum products reached $18.34 billion, which is $25 million less than in September. This is due to lower international oil prices, which more than offset reduced discounts on Russian grades.

“The first US Treasury sanctions, introduced as part of the G7 price cap, contributed to a slight drop in Russian oil prices in the second half of the month due to rising delivery costs,” explained the IEA.

However, as Bloomberg notes, Russia’s monthly income from oil sales abroad remains near the highest level since October 2022.

Petrodollars are the main source of income for Russia’s budget, which is under significant financial strain due to the high costs of the war against Ukraine and the need to keep finances stable ahead of presidential elections in March.

Revenue from oil and gas exports has risen in recent months as Russia’s export prices have risen, easing the country’s budget deficit and giving it more financial resources to fight its efforts to war

Let’s recall that Russia’s oil and gas revenues rose to 1.64 trillion rubles in October. This is 2.2 times higher than the previous month and is the highest monthly figure since April 2022.

Today it became known that Russian oil reached an oil refinery in Greece via Turkey. From there, the oil was sold to the Pentagon in defiance of international sanctions.