Western sanctions make DIRECT HIT on beleaguered Russian economy

INCOME from Russian oil and gas exports is forecast to earn less than 113.6 billion roubles in April. Although Russia is still a major global energy producer its economy has been hit hard by sanctions, according to The Express

Russia’s Ministry of Finance today reported today on its,  “. . . oil and gas revenues and transactions for the purchase/sale of foreign currency in the domestic foreign exchange market

The expected volume of additional oil and gas revenues of the federal budget is projected in April 2023 in the amount of [less than] 113.6 billion roubles.

The deviation of actually received oil and gas revenues from the expected monthly volume of oil and gas revenues in March 2023 amounted to RUB 39.0 billion.

Thus, the total amount of funds allocated for the sale of foreign currency is 74.6 billion roubles. Operations will be carried out from April 7, 2023 to May 5, 2023, respectively, the daily volume of foreign currency sales will amount to the equivalent of 3.7 billion roubles.”

The deployment of Western sanctions, because of Russia’s invasion of Ukraine, has meant the reduction of lucrative markets. As a result, Gazprom has agreed to increase its supply of gas to China via a Siberian pipeline, bringing into focus Russia’s growing reliance on Beijing.

Gazprom is currently in negotiations with China over a second potential supply project across Mongolia, with Former Russian Prime Minister Viktor Zubkov indicating that the company is available to serve other Asian markets.

China has refused to denounce Russia’s war in Ukraine as Beijing sees Moscow as a useful partner in opposition to America’s domination of world affairs.

Russia’s exports, mostly oil and gas, to China surged 31.3 per cent over a year ago in January and February to $18.6 billion.

Meanwhile, Russia’s Commission on Foreign Investments has now implemented directions that any Western company wanting to close shop and move out must directly donate to the Kremlin’s state budget.

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