Russia briefing, June 15


-Covid-19 hits Russia's energy revenue

While volatility in the global commodity markets continues due to the Covid-19 pandemic, Russia, one of the largest exporters of energy sources in the world, has seen its revenue fall.

According to data of the Russian Federal Customs Service, the natural gas export revenue of energy company Gazprom fell to $8.3 billion in the first four months of the year, down 52.3% relative to the same period last year.

Gazprom's natural gas export volume also decreased by 24% to 59.6 billion cubic meters in January-April, compared to the same period of 2019.

The Russian company is one of the largest natural gas producers in the world and is the only company in the country that has the authority to export natural gas through pipelines under Russian law.

The International Energy Agency (IEA) estimates that global natural gas demand is expected to see a record fall of 4% this year.

Russia’s oil export volumes also fell by 3.8 % to 84.9 million tons in the first four months of the year compared to the same period of 2019 with a 25% drop in revenue to $30 billion.

In 2019 overall, the country's revenue from oil exports fell year-on-year by 6% to $121 billion.

Oil and gas exports account for about 40 % of the federal budget of Russia.