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Russia’s Oil Revenues Hit Five-Year Low Amid Ukrainian Drone Strikes and Sanctions
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![Photo of Cyril Barabaltchouk]( "Photo of Cyril Barabaltchouk")
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Russia’s oil revenues fell sharply in August, reaching one of their lowest points since the start of their invasion of Ukraine, Reuters reported, citing the International Energy Agency (IEA).
The decline, which dropped revenues by $920 million to $13.51 billion, is attributed to a combination of factors including Ukrainian drone attacks on Russian oil refineries and export pipelines, as well as ongoing Western sanctions.
The IEA added that a significant drop in crude oil and fuel exports, combined with the widening discount on Russia’s Urals oil blend, now priced at around $56 per barrel, contributed to the slump. This is below the Western-imposed price cap of $60 per barrel.
“Russia’s oil export revenues remain near five-year lows, reducing tax revenues and exacerbating the country’s economic slowdown,” the IEA stated.
Russian oil and fuel exports decreased by 70,000 barrels per day (bpd) to 7.3 million bpd in August. Crude oil exports fell by 30,000 bpd, while refined products dropped by 40,000 bpd.
Meanwhile, Russia’s oil production also declined by 30,000 bpd to 9.3 million bpd, in line with the output quotas set by OPEC+ (the Organization of the Petroleum Exporting Countries and its allies), Reuters writes.
In addition to these challenges, the price cap for transporting Russian crude by UK, Swiss, and EU companies dropped to $47.60 per barrel in early September, further squeezing Russia’s oil revenue.
Previously, it was reported that Hungary had signed a decade-long gas supply contract with Shell Plc, signaling one of its first tangible steps toward diversifying away from Russian energy as the European Union pushes to phase out Moscow’s fossil fuel exports.
