Russia more than triples its current account surplus to US$96 billion as EU energy giants start to pay in rubles
Russia’s current account surplus more than tripled in the first four months of the year to US$95.8 billion, the central bank said, as prices surged for its oil and gas exports and imports plunged under the weight of sanctions imposed by the U.S. and its allies over President Vladimir Putin’s invasion of Ukraine.
The surplus on the current account, the broadest measure of trade in goods and services, was the highest since at least 1994. The figure in first four months of last year was US$27.5 billion.
Last week, the International Energy Agency said Russian oil export revenue is up 50 per cent since the start of 2022 with the Kremlin generating close to US$20 billion per month in sales.
Export volume has rebounded to levels seen before Russia invaded Ukraine. In April, Russian oil exports climbed by 620,000 barrels per day from the prior month to 8.1 million, back to their January and February average, the IEA said.
European energy giants are pressing ahead with plans to keep buying Russian gas as the European Union’s guidelines appeared to allow them to do so without breaching sanctions.
Even as conflicting messages continued to emerge from Brussels over the legality of complying with Moscow’s demands to pay for gas in rubles, Italy’s Eni SpA said it was opening a ruble account with Russia’s Gazprombank to keep the gas flowing.
It’s the clearest sign yet that the biggest European importers of Russian gas are counting on business as usual. Germany’s Uniper SE and Austria’s OMV AG also expect to find a way to keep buying.
Moscow’s demand on March 31 that gas payments should now be made in rubles threw markets and policy makers into disarray and companies have been scrabbling ever since for a way to keep the crucial energy flowing without breaching sanctions aimed at weakening Russia in its war in Ukraine.
The steady inflow of revenue from energy and other exports has — together with strict capital controls — helped support the ruble, turning the Russian currency into the best performer in the world this year.
Russia’s current account surplus more than tripled in the first four months of the year to US$95.8 billion, the central bank said, as prices surged for its oil and gas exports and imports plunged under the weight of sanctions imposed by the U.S. and its allies over President Vladimir Putin’s invasion of Ukraine.
The surplus on the current account, the broadest measure of trade in goods and services, was the highest since at least 1994. The figure in first four months of last year was US$27.5 billion.
Last week, the International Energy Agency said Russian oil export revenue is up 50 per cent since the start of 2022 with the Kremlin generating close to US$20 billion per month in sales.
Export volume has rebounded to levels seen before Russia invaded Ukraine. In April, Russian oil exports climbed by 620,000 barrels per day from the prior month to 8.1 million, back to their January and February average, the IEA said.
European energy giants are pressing ahead with plans to keep buying Russian gas as the European Union’s guidelines appeared to allow them to do so without breaching sanctions.
Even as conflicting messages continued to emerge from Brussels over the legality of complying with Moscow’s demands to pay for gas in rubles, Italy’s Eni SpA said it was opening a ruble account with Russia’s Gazprombank to keep the gas flowing.
It’s the clearest sign yet that the biggest European importers of Russian gas are counting on business as usual. Germany’s Uniper SE and Austria’s OMV AG also expect to find a way to keep buying.
Moscow’s demand on March 31 that gas payments should now be made in rubles threw markets and policy makers into disarray and companies have been scrabbling ever since for a way to keep the crucial energy flowing without breaching sanctions aimed at weakening Russia in its war in Ukraine.
The steady inflow of revenue from energy and other exports has — together with strict capital controls — helped support the ruble, turning the Russian currency into the best performer in the world this year.
