Russia’s oil and gas revenue in June rises by more than 50% year on year to $9.4 billion, according to a Reuters report. Since the country has received multiple sanctions from the United States, Russia along with the BRICS bloc has steered away from the US Dollar. Instead of suffering, Russia is seeing massive growth in the oil sector.
The country’s oil and gas revenue had slumped drastically by 23.9% last year compared to 2022 due to the sanctions. However, it sidelined the US sanctions this year selling oil at cheaper prices to Europe and other developing countries. The US Treasury sanctioned more than 300 Russian entities, noting it is taking a “sweeping aim at the foundational financial infrastructure” of the country. Now, with Russia’s oil revenue seeing growth, BRICS controls nearly have of global oil production, and is flourishing against the US.
According to Reuters, Oil has been the most important single source of cash for the Russian Kremlin. It accounts for around a third to a half of total federal budget proceedings for the last decade. Reuters calculations show Russia’s projected June oil and gas revenue at 814 billion roubles ($9.4 billion), up from 794 billion roubles in May and 529 billion roubles in June 2023.
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Entire BRICS Bloc Benefits From Russian Oil Achievement
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Top oil-exporting country Saudi Arabia had purchased oil at discounted prices from Russia and laundered it all over Europe. India had also procured cheap Russian oil and saved nearly $7 billion in exchange rates. China has also been among the top purchasers of Russian oil since 2022 after the US pressed economic sanctions. Since Russia has made its discovery of Oil in Antartica, the country is netting more and more profits for oil distribution. Now, Russia and the entirety of BRICS is benefitting from Oil production.
Reuters data also adds that for 2024 as a whole, the government budgeted for federal revenue of 10.7 trillion roubles from oil and gas sales, up 21% from 2023, when weaker oil prices and a fall in gas exports reduced the revenue by 24%.