A recent report from Bloomberg, citing the Russian Finance Ministry, revealed that Moscow’s revenue from oil sales and taxes in April 2024 was more than double that of April 2023. This increase was attributed to a decline in the value of the ruble, higher oil prices, and Russia’s ability to sell oil to countries like India and China.
Despite facing sanctions from the US and Western Europe following its invasion of Ukraine in 2022, Russia expanded its oil exports to allies like China and India. These countries, lacking significant oil reserves, have the refining capacity to process Russian crude at a lower cost, making them attractive buyers for Russia.
The Bloomberg report highlighted that oil-related tax revenue for Russia in April 2024 reached 1.053 trillion rubles, compared to 497 billion rubles in April 2023. The report predicted that Russia could collect around $126 billion in oil and gas tax revenue in 2024.
Russia’s increase in revenue aligns with earlier predictions, as higher oil prices have boosted its oil and gas income. Despite attempts to impose price controls on Russian oil, the country has managed to avoid these restrictions by expanding its customer base beyond the Western market.
India, one of Russia’s key oil buyers, has defended its decision to continue importing Russian oil, citing the benefits of refining cheaper crude for local consumption and global sale. The two countries have also strengthened their trade ties through investments in Indian stocks and infrastructure projects.
Overall, Russia’s oil revenue surge reflects its ability to adapt to sanctions and explore new markets for its oil exports. The country’s strategic partnerships with BRICS nations like China and India have helped sustain its oil profits amidst international pressure.
