Page 77 - bne IntelliNews monthly country report Russia February 2024

9.0 Industry & Sectors 9.1 Sector news
9.1.1a Oil & gas sector results
Sanctions were supposed to reduce Russia’s oil production from the pre-war high of 11mn b/d to around 6.5mn b/d, according to a report by Yale in the early days of the war. But that failed to happen.
Oil production did drop off after the start of hostilities, but then recovered by the end of the year to almost 11mn b/d again. In 2023 the level of production has fallen off to around 9.5mn b/d, but it has been kept low by Russia’s agreement to voluntarily cut 500,000 b/d day off its production to support prices. Russia exported close to 3.5mn barrels of oil a day in 2023.
Given Russia has chosen to reduce production, rather than being forced to reduce it, is testament to the ineffectiveness of the sanctions.
Due to promises made to OPEC+, Russia's oil exports in 2023 will total less than the 247mn tonnes used in Russia's main macroeconomic forecasts, Novak said.
Russia’s revenues from its main tax-generating sources of petrodollars almost doubled between April and October. Russia’s net oil revenues of $11.3bn in October accounted for 31% of the nation’s overall net budget revenue for the month, according to Bloomberg calculations that are built around Russian finance ministry data, but smooth out profit-based tax revenue. That was the highest since May 2022 and exceeded any single month in the year before the invasion of Ukraine..
77 RUSSIA Country Report February 2024 www.intellinews.com