Russia’s 2023 Energy Exports: Shifts, Taxes, and Domestic Protection

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In the first eleven months of 2023, Russia’s gas exports saw a physical decline of 34% year over year, while oil exports fell by 7%. These figures were discussed by Ruslan Davydov, who serves as the acting head of the Federal Customs Service, during an interview on the state channel Russia 24. Davydov highlighted the shifts in energy trade patterns and the impact of global sanctions on Russia’s export profile. (attribution: Russia 24 interview with Ruslan Davydov)

Davydov noted that gas shipments abroad contracted by 69% when measured in monetary terms. He also pointed out that oil experienced less adverse effects, thanks to the availability of alternative exporting routes that mitigated some of the disruption. The official presented a picture of a more diversified, albeit more tightly managed, energy export landscape in response to shifting demand and policy conditions. (attribution: Federal Customs Service statement)

According to the Federal Customs Service, energy exports have been redistributed from traditional Western markets toward Eastern and Southern destinations. The principal buyers of Russian hydrocarbons now include China, India, Türkiye, and members of the EAEU. This realignment reflects a deliberate response to sanctions and logistical constraints, as well as evolving energy needs among large consuming regions. (attribution: Davydov remarks during official briefing)

Earlier, the acting head of the Federal Customs Service explained that the implementation of flexible export taxes, effective from October 1, 2023, enabled customs authorities to accumulate more than 117 billion rubles in tax payments. The government introduced duties on a range of goods, such as alcohol, tobacco, fish, dairy products, and other items. The level of duties is influenced by the ruble exchange rate, a mechanism intended to shield the domestic market during currency fluctuations. (attribution: Customs Service briefing)

Davydov further stated that the Federal Customs Service deposits roughly 29 billion rubles in customs duties into the federal budget on each business day. Temporary export duties are described as a tool to protect the Russian domestic market amid ongoing exchange-rate volatility, ensuring a buffer against rapid currency swings that could destabilize prices and supply. (attribution: Federal Customs Service report)

There were prior moves in the Federation Council to suspend tax treaties in response to sanctions imposed on the Russian Federation. This step appears to be part of a broader fiscal strategy aimed at preserving economic stability and supporting domestic industries during periods of international financial pressure. (attribution: Federation Council commentary)

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