Russian Oil Revenue Climbed by 50% Despite Embargoes from Major Importers

Russia’s oil revenue are up by 50% this year even at a time when the global importers shunned down supply amid the country’s invasion in Ukraine, the International Energy Agency said.

According to the Paris-based IEA said in its monthly market report, Moscow earned roughly $20 billion each month in 2022 from combined sales of crude and products amounting to about 8 million barrels a day.

Russian shipments have continued to flow to European Union and Asian remained a keen customers with China and India snapped deep discounted cargoes.

The agency noted reduced flows of Russian refined products such as diesel, fuel oil and naphtha have aggravated tightness in global markets. Stockpiles have declined for seven consecutive quarters, with reserves of so-called middle distillates at their lowest since 2008.

The European Union bloc remained the largest market for Russian exports in April, taking 43% of the country’s exports, the IEA said.

Meanwhile, European Union following the U.S. and U.K. pushing towards ban of Russian crudes. EU sanctions against Russian state-linked enterprises such as production giant Rosneft PJSC will take effect on May 15, and the bloc is moving towards a full ban on the country’s supplies.

“If agreed, the new embargoes would accelerate the reorientation of trade flows that is already underway and will force Russian oil companies to shut in more wells,” the IEA said.