Russia’s budget revenues from oil and gas exports rose sharply in February despite Western sanctions and price ceilings. Bloomberg writes about this.
As reported by the Russian Ministry of Finance, revenues from hydrocarbon taxes last month reached 945.6 billion rubles ($10.4 billion); This means an 80% increase compared to the previous year.
The “efficiency” of the Russian budget was achieved by the increase in world oil prices. According to the Ministry of Finance, “Revenues from taxes on oil and petroleum products, which account for 84% of all hydrocarbon revenues, have more than doubled.”
The average export price of Russian Ural oil in February was $65 per barrel; This is much higher than $50 a year ago. This was facilitated by Moscow’s decision to compensate producers using a special pricing mechanism for the difference between the established price ceiling ($60/bbl) and the higher market value of the Urals.
“Russia has introduced the so-called floor price mechanism, which forces producers to pay taxes based on an artificial $15 discount on Brent from the Urals. The budget received this money in February,” the publication notes.
Before that, Western countries banned the import of Russian oil by sea and set a ceiling price of $60 per barrel. For Russian exporters. However, Moscow managed to partially neutralize the impact of sanctions by organizing its own “gray” transportation and cooperating with non-Western buyers, intermediaries and service providers.
The agency notes that “although there are no restrictions on purchasing Russian shipments at higher prices, Western services such as insurance and freight cannot be used to service shipments.”
Since November, the United States and its allies have stepped up inspections of price cap compliance and imposed sanctions on some ships and traders for violating the restrictions. This situation increased the Urals’ discount to Brent once again. However, Russia continues to benefit from raw material exports by limiting the impact of sanctions.
“Budget revenues from the oil production tax in February reached the highest level in almost two years, due to the reduction of export duties on raw materials and products and the increase in the production tax,” the agency concluded.
Yesterday it was learned that the USA. prohibited China buys oil from strategic reserves.
Previously Biden elongated Sanctions against Russia.
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Source: Gazeta
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