Can still earn: what income of the Russian Federation from oil and gas in 2023 - Bloomberg
According to the publication, the Russian budget is still replenished with the help of oil and gas taxes, but over the past year, this type of funding has decreased by 24%. "However, oil and gas revenues still amounted to almost a third of all budget revenues last year, according to the Ministry of Finance," journalists write.
At the same time, income in the form of oil dollar was less due to the fact that the prices of Russian barrels decreased, as the global oil market has declined and Western energy sanctions have intensified. Yes, the average price of Urals oil, which is the main one for Russian exports, fell by more than 17% last year, trading, on average, $ 62. 99 per barrel. In parallel, exports of Russian pipeline gas decreased.
The Kremlin tried to remedy this situation with the help of subsidies, which were distributed to the oil industry, but the income decreased even more. Therefore, as it is noted, the budget of the Russian Federation in 2024 will be under additional pressure against the background of reducing government income from oil and gas and the Kremlin's desire to increase military expenditures by almost 70%.
"Social costs will also be higher as President Vladimir Putin is preparing to run for the fifth term in March elections," the publication reads. In the second half of 2023, Russia continued to increase oil production. Thus, during the 11 months of 2023 in Russia, oil wells were drilled to a total depth of 28 100 kilometers. The growth of drilling is ongoing, although the energy industry is under pressure from sanctions, as it is a key source of funding for the Russian Federation against Ukraine.
According to the data of analysts of the intelligence company Kpler and the Moscow consultant Yakov & Partners, the total volume of operational drilling in Russia in 2023 will reach 30 thousand kilometers. We will remind, since December 5, 2022 there is an embargo on import of sea oil from Russia, which was introduced by the European Union (EU). G7 and Australia have also set a price ceiling at $ 60 at a barrel for Russian oil.