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Russia's oil export revenues continue to drop for 4th straight month

by Nate Ostiller and The Kyiv Independent news desk July 11, 2024 5:04 PM 2 min read
Oil storage tanks at the RN-Tuapsinsky refinery, operated by Rosneft Oil Co., in Tuapse, Russia, on March 23, 2020. Photo for illustrative purposes. (Andrey Rudakov/Bloomberg via Getty Images)
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Russian revenues from its oil export industry fell again to their lowest point in four months, Bloomberg reported on July 11, citing data from the International Energy Agency.

Long central to Russia's economy, oil and other fossil fuel exports have also formed the backbone of Russia's financial support for its war machine.

Russia's revenues from oil exports in June were about $16.7 billion, a 1.2% drop from the previous month. Earnings from oil exports have continued to decline since a high of almost $19 billion in February 2024.

The decrease in revenues coincides with a drop in oil exports, which fell to 7.6 million barrels a day from 7.7 million barrels a day the previous month.

A majority of Russian oil continues to trade above the $60 per barrel price cap, which was first imposed by Ukraine's Western allies in December 2022.

While initially successful, Russia later managed to largely dodge the effects by using a "shadow fleet" of uninsured tankers. Kyiv's partners have been intensifying their efforts to enforce the cap.

The declining overall revenues do not necessarily equate to a lower total amount of oil money going to the Russian government, Bloomberg wrote.

"Revenues can fluctuate significantly from month to month, in part reflecting the schedule for some fiscal payments."

Russian oil taxes still brought in $6.7 billion to the Kremlin, almost 50% higher than the same point last year.

Aiming at one of Russia's main sources of money to fund its war, Ukraine has made a concerted effort to target the Russian oil industry with long-range drone strikes.

Bloomberg reported in March that the strikes have disrupted between 12-14% of Russia's oil refining capacity.

Strikes against Russian energy targets prompted criticism from U.S. officials in April. Washington said it does not support Ukraine's attacks on oil refineries, citing fears that it could threaten the global energy market.

US efforts to sanction Russia, Iran hampered by desire to keep gas prices low, sources tell WSJ
″(President Joe Biden) has wanted to do everything that he could to make sure that American consumers have the lowest price possible at the pump, as it affects families’ daily lives,” a senior administration official told the Wall Street Journal.
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Ukraine's GDP grew by more than 4% in 6 months.

"Due to the high adaptability to difficult conditions and experience in responding to such challenges, the Ukrainian economy continued to grow" in June, said Economy Minister Yulia Svyrydenko.
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