Russia saw revenue from natural gas exports fall 40% month-on-month in June, underscoring the self-inflicted damage that Gazprom’s recent cuts in gas supplies to Europe are causing to the coffers of Moscow.
The country’s gas export revenue in June amounted to 633 billion rubles ($10.7 billion), Moscow-based newspaper Vedomosti reported this week, citing federal tax data. In May, these revenues amounted to more than 1 trillion rubles. Oil sales also fell, by 10%, to 605 billion rubles in June.
Much of the international attention on Russian gas supply cuts has focused on the impact this is having on European energy markets, which is certainly substantial, with spot prices hitting 2 $200 per 1,000 cubic meters on July 27 for the first time in history. But Gazprom’s actions have also caused significant damage to the Russian budget.
It is impossible to say exactly how much damage this has caused, as the government has not released budget details since the start of the invasion of Ukraine. Vedomosti also contacted Gazprom, Rosneft, Lukoil, Gazprom Neft and Surgutneftegaz for details on oil and gas exports, but received no response.
In dollar terms, gas export revenue fell to $11.1 billion in June from $16.2 billion the previous month. Vedomosti notes that despite the month-on-month decline, Russia’s revenue from gas sales abroad was still three times higher in June than in the same month last year, highlighting the impact of soaring gas prices in Europe, despite reduced volumes.
In terms of volume, Russia exported 10.9 billion cubic meters in June, compared to 12 billion cubic meters the previous month. On the other hand, it shipped 15.7 billion m3 in May and June 2021.
Russia began cutting off gas customers in late April after some refused to comply with a Kremlin decree requiring payment in roubles. Since June it has also reduced supply through the Nord Stream pipeline, citing Siemens’ delay in returning a delay, although the company could have compensated for those constraints by sending more gas through Ukraine and other routes. . The pipeline is currently operating at only a fifth of its capacity of 55 billion cubic meters per year.