oil and gas sector needs more time to adapt – Kommersant

Russian Prime Minister Mikhail Mishustin said that the most difficult period for the Russian economy has passed; it is going through a large-scale transformation after breaking ties with Western partners. He noted that the oil and gas sector needs the most time to adapt.

“By the middle of this year, the economy had almost completely recovered to pre-crisis levels. With the possible exception of the oil and gas sector, which needs more time to rebuild commodity flows and find new trading partners,” the Prime Minister said during the Moscow Financial Forum (quoted from “Prime”).

After the entry of Russian troops into Ukraine, Western countries imposed sanctions against the Russian Federation. A number of restrictions concerned the oil and gas sector. In particular, the EU and G7 countries introduced an embargo on maritime supplies of oil and petroleum products, and also established a price ceiling for Russian fuel.

In 2023, Russian income in the oil and gas sector began to decline. Thus, in January-July they decreased year-on-year by 41.4%, dropping to 4.19 trillion rubles. Budget deficit for this period made up 2.817 trillion rubles, or 1.8% of GDP. According to the draft budget, non-oil and gas revenues in 2024 should be twice as high as oil and gas revenues. Against the same background, domestic prices for gasoline and petroleum products increased sharply.

How the government is going to deal with the fuel crisis – in the material “That day we fueled as best we could”

Erdni Kagaltynov