Posted on 02/09/2023 7:53:39 AM PST by marcusmaximus
A slide in Russian revenue from oil and gas clashed against the Kremlin ramping up spending on its nearly year-long war against Ukraine, resulting in a wider budget deficit for the country in January.
Oil and gas revenue tumbled 46% in January from the same month a year ago to 426 billion rubles ($5.96 billion), Russia's finance ministry said Monday in a preliminary release. It attributed the decline largely to a drop in prices for its Urals blend — its largest crude oil export — and to a fall in exports for natural gas.
Russia sold Urals at an average price of $49.48 per barrel in January, lower than the $70 per barrel total in Russia's budget, according to the Financial Times. Revenue from oil and gas serves as a key source of funding for spending by Moscow, but the country has run into sanctions imposed by Western countries after Russia invaded Ukraine.
Government spending in January, meanwhile, jumped by 58.7% from a year earlier to 3.12 trillion rubles. Expenditures rose amid largely classified plans by Russia to increase defense spending to 3.5 trillion rubles in 2023, the FT reported.
The lower energy sales and the rise in spending contributed to the federal budget logging a deficit of 1.76 trillion rubles ($24.78 billion) last month.
(Excerpt) Read more at markets.businessinsider.com ...
Gee… “budget deficit” … sounds so familiar!
They’ve a long, long way to go to catch up to my country!
We dominate deficits.
The difference being that when Russia increases military spending, it quickly results in increased military hardware production, since they’re not into the Just-in-Time crap that the Western MBA Schools teach.
The West will eventually be able to step up building their weapons, but it’s years away and it’s dependent on Russia and/or China being willing to continue selling us key raw materials (remember, Just-in-Time’s main purpose is to eliminate stockpiles...).
Putin is such a strong genius for continuing to sell his oil to China and India for a 30% discount to market.
Total BS propaganda article.
Putin’s oil revenue is dropping faster than CNN and MSNBC’s TV ratings.
—> Putin is such a strong genius for continuing to sell his oil to China and India for a 30% discount to market.
Obviously he considers selling to certain countries who resell it his best option.
That’s how markets work - even when your globohomopedos try to manipulate it.
Faster than David Caruso’s career.
Somewhat related, but my experience with young MBAs is terrible.(25-35)
Never looking beyond the current spend and fiscal quarter.
This is in our utility industry. Highly intelligent engineers surrounded by corporate ambitious personnel play “musical chairs” hoping the music doesn’t stop when they’re in charge. It’s madness…
Putin is supposed to be dead according to you, foreign scum.
Russia has the lowest debt to GDP ratio of the entire industrialized world.
Yep. Putin is a stronk genius for selling his oil to China and India for $38.50 a barrel today. His genius is stronk.
“Oil and gas revenue tumbled 46% in January from the same month a year ago...”
Just imagine what would happen to the price Putin’s oil if sanctions did work.
Russia’s crappy economy is smaller than Brazil’s.
He sees it as the best option he has - even if he might wish he had other options.
It’s life.
“Russia’s crappy economy is smaller than Brazil’s.”
Look on the bright side, Russia’s per capita GDP might one day catch up with Kazakhstan.
You’re such a useful idiot...until you are no longer useful to your own kind.
“Last week, the finance ministry said it would sell more than $2 billion worth of foreign currency from February 7 to March 6...”
Nothing says strong economy like dumping reserves of foreign currency in order to pay debt.
Russia's oil and gas budget revenues grew by 28% in 2022 17 Jan 2023
According to preliminary data released by the Russian government, Russia's budget revenues from oil and gas increased by 28% or RUB 2,500bn (US$36.7bn) in 2022. Oil production increased by 2% to 535 Mt, with oil exports growing by 7%.
484 bcm of gas were delivered to the Russian market in 2022 and LNG exports rose by 8% to 46 bcm (Russia aims to reach a LNG production level of 60 Mt/year in coming years and 100 Mt/year later). Pipeline gas supplies declined due to European sanctions and interrupted supplies from the Nord Stream pipelines. Earlier in January 2023, Gazprom announced a 46% decrease in gas exports outside the Commonwealth of Independent States (CIS) from 185 bcm in 2021 to 101 bcm in 2022. The company is seeking to reroute its energy flows from to Asia, especially to China. Russia sold 16.5 bcm of natural to China in 2021; in 2022, it exported 15.5 bcm of gas to China through the Power of Siberia pipeline.
Measurements are in Rubles. There is no relevance to dollar “equivalents” because food and rent are not paid in dollars, nor worker pay earned thus.
Here is what apartments in the St Petersburg suburbs costs, and how it looks, for folks in or just out of college:
https://www.youtube.com/watch?v=6BmaHVZu454
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