Russia expects the price of its natural gas exports will more than double this year compared to a year ago, according to an economy ministry forecast seen by Reuters.
This year’s average price is now seen at $730 per 1,000 cubic meters, up 140% from 2021 and up 39% from the Kremlin’s previous forecast for 2022.
High gas prices will offset the decline in export volume, while crude oil exports will remain roughly flat. Moscow predicts total energy export revenue will jump 27% this year to $337.5 billion.
Those additional, solely sanctions produced, $80B in Russian energy profits will replace a lot of that Warsaw Pact junk with the latest Chicom military technology.
EU has moved on from RuZZian energy.
Decisions made. Implementation in progress.
Its over for RuZZia in Europe.
“Russia expects the price of its natural gas exports will more than double this year compared to a year ago”
Those purported expectations, and five dollars, could get them a coffee at Starbucks (for which they would now have to travel outside their country).
The peak of the wartime surge in both oil and natural gas prices has passed, and both are down by a third. Gas exports volumes have crashed dramatically - for good. Those customers are not coming back, and that gas cannot physically move to other customers for at least a decade, if they had Marshall Plan-like funding, which they don’t.
So it does not really matter what the year’s average is, because the party is over. Revenues are now way down, on lower prices and lower volumes. Even with the big initial revenue surge, their deficit increased and their economy shrank in the first half, due to the war and sanctions. Revenues were up, but costs were up by more.
Now that revenues have plunged, sanctions and war expenses are continuing to increase.
Oh, and China is not selling (and certainly not gifting) weaponry, for fear of being sanctioned themselves. In fact, a lot of Chinese companies, especially tech, have pulled out from Russia, to protect their much larger interests in the West. Just this week, UnionPay announced that they were pulling out, leaving Russia without modern credit card transaction capability. Visa, Mastercard and others have already exited.