March energy sales in Russia $ 3.6 billion less than expected amid sanctions

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March energy sales in Russia $ 3.6 billion less than expected amid sanctions

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  • Russia said on Tuesday that government revenue from energy sales in March was $ 3.6 billion less than expected.
  • Russia expects energy revenue of 790 billion rubles ($ 9.4 billion), but received around 488 billion rubles, a loss of 38%.
  • Western nations have turned away from Russian energy supplies in the wake of the invasion of Ukraine.

Russia earned far less than expected oil and gas sales in March, suggesting the Kremlin underestimated the impact of the war in Ukraine.

Revenues from oil and gas sales in March were 302 billion rubles ($ 3.6 billion), or 38%, less than the Russian finance ministry forecasts on March 3, according to ministry data. , published on Tuesday.

Russia is a leading oil supplier and the largest gas exporter in the world, and Europe typically gets around 40% of its natural gas from Russia. However, European and other Western nations have turned away from Russian supplies in the wake of the invasion of Ukraine.

On March 3, the Russian finance ministry predicted that the country would earn about 790 billion rubles from oil and natural gas sales in March. The actual figure was closer to 488 billion rubles.

The finance ministry indicated lower-than-expected natural gas exports in March and changes to energy tax rules.

It also said its oil and gas revenues were 216.4 billion rubles lower than expected in February. However, he said he expects to earn 798.4 billion rubles in additional revenue from energy sales in April.

President Joe Biden has pledged to ban Russian energy imports, and the European Commission has said it could reduce EU demand for Russian gas by two-thirds by the end of the year, as part of a plan to diversify supplies. The US has offered to ship more liquefied natural gas to its allies to help squeeze Russian exports.

Over the weekend, Lithuania became the first EU country to completely cut Russian gas imports, said Dainius Kreivys, its energy minister.

In 2021, just over a quarter of Lithuania’s gas supply came from Russia, according to Amber Grid, the country’s pipeline operator. Kreivys said the country will close the gap with imports of liquefied natural gas from the United States and Norway, Bloomberg reported.

Russian President Vladimir Putin said Russia is working to require “hostile countries” to pay for gas in rubles, which European Commission President Ursula von der Leyen said would be a “clear breach of contract” and an attempt to circumvent. the sanctions imposed by the west.

Shortly after the outbreak of the war, Germany halted plans for the Nord Stream 2 pipeline, designed to carry gas between Russia and mainland Europe. On Monday, Germany said it had taken control of a local Gazprom unit.

Shell previously said it was withdrawing from its joint ventures with Gazprom and related businesses, while BP said it was ditching its 20% stake in Russian oil company Rosneft.

Western sanctions imposed on Russia could wipe out 15 years of economic growth in the country and cause inflation to skyrocket.

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