That Russia would go so far as to really break this revenue stream? 50% of their exports in 2021 were hydrocarbons and related products. What they want is long term contracts, something that the Green Transition would highly frown upon.
The question is how do they plan to turn this situation around, and transform themselves from Boogeyman to European Energy Saviour?
I have no doubt that there is a deep connection between this Russian strategic outcome, and the little mobilization exercise going on.
Factbox: Russia's oil and gas revenue windfall
MOSCOW, Jan 21 (Reuters) - Russia's sales of oil and natural gas far exceeded initial forecasts for 2021 as a result of skyrocketing prices, accounting for 36% of the country's total budget.
Russian commodity sales have been under a spotlight in recent months amid heightened tensions between Moscow and the West over Ukraine, which is seeking closer ties with NATO.
Russia has a big impact on Europe's gas markets, even countries it does not supply directly.
read more Report ad
Following are details of Russian oil and gas sales:
- According to its Finance Ministry, Russian oil and gas revenues exceeded initial plans by 51.3% in 2021, totalling 9.1 trillion roubles ($119 billion). In October alone, revenues were 1.1 trillion roubles, or almost $500 million per day.
- Total budget revenues reached 25.29 trillion roubles last year, up from 18.72 trillion roubles in 2020.
- The Russian Finance Ministry had initially projected an oil price , of $45 per barrel when compiling the budget for 2021. The price has instead averaged $69.
- The Economy Ministry had expected an average natural gas export price of $156.3 per 1,000 cubic metres in 2021. Russian gas exporting monopoly Gazprom said in December that the price was likely to reach $280, with the final data yet to come.
- According to the central bank, Russia's total exports reached $489.8 billion in 2021. Of that, crude oil accounted for $110.2 billion, oil products for $68.7 billion, pipeline natural gas for $54.2 billion and liquefied natural gas $7.6 billion. Report ad
- Russia ran a historically-high current account surplus of $120.3 billion, equal to 7% of gross domestic product, last year, driven by high gas prices.
read more - Growing volumes and high prices meant that the share of gas in Russia's annual fuel export proceeds increased from historic levels of 15-20% to 23% in 2021, which is still modest compared to oil, ING said in a note.
- The rouble is set to benefit from record high prices for natural gas in Europe as gas revenues are not absorbed by Russia's National Wealth Fund to the extent that oil revenues are, analysts have said, while warning that geopolitics could yet outweigh this advantage.