Russia’s oil exports experienced a significant increase, reaching a peak not seen since the country’s invasion of Ukraine last month. This is part of Vladimir Putin’s plan to bolster his war funds.
As per the International Energy Agency (IEA), Russian exports surged by 50,000 barrels daily to 8.3 million in the past month. This occurred despite the Kremlin’s prior declaration that it would decrease production by 500,000 barrels daily.
In spite of Western sanctions, revenues rose by $1.7bn (£1.4bn) in April, reaching $15bn (£12bn), according to the IEA.
However, compared to the same period last year, just after Putin’s invasion, Russia’s oil revenues were still 27% lower.
The IEA, in its monthly oil market report, stated: “Russia may indeed be increasing volumes to compensate for the revenue shortfall.”
The IEA also reported a 64% year-on-year decline in Russia’s tax receipts from its oil and gas sector.
In a joint move with the EU, the G7 and Australia have imposed price ceilings on Russian petroleum products and crude oil, aiming to disrupt a vital source of war funding for Ukraine.
