Page 10 - RusRPTFeb22

2.3 Soaring oil and gas prices hand govt revenue windfall in 2021
Soaring prices have handed the Russian government an oil and gas revenue windfall
- According to its Finance Ministry, Russian oil and gas revenues exceeded initial plans by 51.3% in 2021, totalling 9.1 trillion rubles ($119bn). In October alone, revenues were 1.1 trillion rubles, or almost $500mn per day.
- Total budget revenues reached 25.29 trillion rubles last year, up from 18.72 trillion rubles in 2020.
- The Russian Finance Ministry had initially projected an oil price, of $45 per barrel when compiling the budget for 2021. The price has instead averaged $69.
- The Economy Ministry had expected an average natural gas export price of $156.3 per 1,000 cubic metres in 2021. Russian gas exporting monopoly Gazprom said in December that the price was likely to reach $280, with the final data yet to come.
- According to the central bank, Russia's total exports reached $489.8bn in 2021. Of that, crude oil accounted for $110.2bn, oil products for $68.7bn, pipeline natural gas for $54.2bn and liquefied natural gas $7.6bn.
- Russia ran a historically-high current account surplus of $120.3bn, equal to 7% of gross domestic product, last year, driven by high gas prices.
- Growing volumes and high prices meant that the share of gas in Russia's annual fuel export proceeds increased from historic levels of 15-20% to 23% in 2021, which is still modest compared to oil, ING said in a note.
- The ruble is set to benefit from record high prices for natural gas in Europe as gas revenues are not absorbed by Russia's National Wealth Fund to the extent that oil revenues are, analysts have said, while warning that geopolitics could yet outweigh this advantage.
2.4 Russia’s central bank mulls a cryptocurrency ban
Russia could impose tough restrictions on cryptocurrencies, according to a report published Thursday by the Central Bank. When China banned cryptocurrencies last year, there was an exodus of miners to neighboring states, and Russia suddenly found itself the world’s third-largest bitcoin miner after the US and Kazakhstan.
What happened?
The Central Bank report on the crypto-market recommended:
10 RUSSIA Country Report February 2022 www.intellinews.com