BRICS: Russia With 50% Increase in Oil Revenues

Russia's oil and gas revenues rose more than 50% year-on-year to $9.4 billion in June, as reported by Reuters.

Despite facing numerous US sanctions, Russia, along with the BRICS, is distancing itself from the US dollar. Contrary to expectations, this shift has led to a significant growth in the Russian oil sector.

Last year, Russia’s oil and gas revenues dropped by 23.9% compared to 2022 due to the sanctions. However, bypassing US sanctions, Russia has been able to sell oil at lower prices to Europe and other developing countries. The U.S. Treasury has imposed sanctions on more than 300 Russian entities, with the aim of targeting the country’s financial infrastructure. Now, as oil revenues increase, the BRICS controls nearly half of global oil production and is thriving despite U.S. sanctions.

According to Reuters, oil is the main source of revenue for the Kremlin, accounting for about one-third to one-half of the state budget over the past decade. Data shows Russia’s oil and gas revenues for June totaled 814 billion rubles ($9.4 billion), up from 794 billion rubles in May and 529 billion rubles in June 2023.

Saudi Arabia, a leading oil exporter, buys oil at preferential prices from Russia and distributes it in Europe. India has also bought cheap Russian oil, saving nearly $7 billion thanks to exchange rates. China has been one of the leading buyers of Russian oil since 2022, after the US imposed economic sanctions. Since Russia discovered new oil reserves in Antarctica, the country has reported increasing profits from its distribution. As a result, Russia and the BRICS are reaping benefits from oil production.