Russian Energy Export Revenue To Rise By 'Almost $100 Billion' This Year

The jump in revenues, if it materializes, will help shore up Russia's economy in the face of sweeping Western sanctions that are crippling some of its industries.

Russia forecasts energy export revenues to rise this year by nearly $100 billion as higher commodity prices offset a decrease in volumes, Reuters reports, citing government documents.

Russia's Economy Ministry now expects energy export revenue to reach $338 billion in 2022, up more than a third from $244 billion last year.

The jump in revenues, if it materializes, will help shore up Russia's economy in the face of sweeping Western sanctions that are crippling some of its industries.

Greater export revenues will enable President Vladimir Putin to raise wages and pensions at a time when the Russian economy has fallen into recession and inflation is eroding living standards.

Energy exports account for about half of Russia's federal budget revenues.

The Economy Ministry forecasts the average natural-gas export price will more than double this year to $730 per 1,000 cubic meters, before gradually falling until the end of 2025, according to the documents seen by Reuters.

Russia's gas exports will decline by about 15 percent this year amid deteriorating relations between Brussels and Moscow over the war in Ukraine.

The EU has declared its intention to slash its dependence on imports of gas from Russia, which for years had been the biggest supplier of the fuel to the bloc, to protest its invasion of Ukraine.

The decrease in flows to the EU will be only partially offset by increased exports to China.

The Economy Ministry expects energy export earnings of $256 billion next year -- still higher than in 2021 -- as oil and gas prices ease from near-record levels.

Overall, Russia's economy is holding up better than initially expected in the face of sanctions, as the surge in energy revenue gives the government more firepower to support struggling sectors.

The ministry now expects Russia's economy to contract just 4.2 percent this year and real wages to fall only 2.8 percent.

The ministry earlier warned that the economy could contract by as much as 12 percent this year, which would have been the steepest drop in nearly three decades.