Aug 18, 2022, 11:57 AM

Russia sees 38% rise in energy export earnings this year

Russia sees 38% rise in energy export earnings this year

TEHRAN, Aug. 18 (MNA) – Higher oil export volumes, coupled with rising gas prices, will boost Russia's earnings from energy exports to $337.5 billion this year, a 38% rise on 2021, according to an economy ministry document.

The jump in revenues, if it materializes, will help shore up Russia's economy in the face of waves of Western sanctions, Reuters reported.

It will provide President Vladimir Putin with cash to fund military spending or to boost wages and pensions at a time when the economy has fallen into recession and inflation is eroding living standards.

But the boom in energy earnings only partly compensates for the damage from sanctions to the economy overall, analysts said.

"The impact of sanctions on Russia's economy is very uneven. In some sectors, it has been catastrophic, such as the car industry. The oil sector is relatively unscathed for now," said Janis Kluge, senior associate at the German Institute for International and Security Affairs.

Besides autos, he cited IT and finance as two of the sectors worst hit. "These sectors have had the strongest links to the West and are consequently suffering the most."

The ministry document projects energy export earnings will ease to $255.8 billion next year, still higher than the 2021 figure of $244.2 billion.

MNA/PR

News ID 190382

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