Despite sanctions

Russia’s revenue increased by more than 26% in 2024

(Bild: APA/AFP/NATALIA KOLESNIKOVA)

Despite Western sanctions, Russia was able to significantly increase its revenue from oil and gas sales last year.

In 2024, they rose by more than 26% to 11.13 trillion roubles (around 107 billion euros), according to government data published on Monday. In 2023, revenues had slumped by 24 percent due to lower oil prices and falling gas exports. 

Archive image from 2023: A Russian oil tanker in a Pakistani port(Bild: APA/AFP/Karachi Port Trust (KPT))

Funds for the war in Ukraine
Over the past ten years, oil and gas sales have always been the most important source of money for the Kremlin, which has also been used to finance the war of aggression against Ukraine, which has now been going on for almost three years. They accounted for around a third to a half of total budget revenues.

Following the new US sanctions against the Russian oil trade, there are increasing calls in the West to take tougher action to further cut off the Kremlin's money supply. Six EU countries have called on the European Commission to tighten the price cap on Russian oil agreed by the G7 states. The current upper limit of 60 dollars (around 59 euros) per barrel should be lowered.

Trade with China at record level
China is an important buyer of Russian oil and gas. Despite stricter US sanctions against banks that do business with Russia, a country at war, trade between China and Russia reached a record level last year. Imports and exports totaled 1.74 trillion yuan (around 230 billion euros), according to customs data published in Beijing on Monday. According to the data, trade grew by 2.9 percent compared to 2023, although growth in 2023 was much stronger at 32.7 percent.