Russia Cashing In on Its Oil and Natural Gas Sales
Sales of Russia’s crude oil, petroleum products, and natural gas accounted for 68% of Russia’s total export revenues in 2013, based on data from Russia’s Federal Customs Service.
“Russia received almost four times as much revenue from exports of crude oil and petroleum products as from natural gas. Crude oil exports alone were greater in value than the value of all non-oil and natural gas exports,” according to an analysis conducted by the US Energy Information Administration (EIA).
The biggest buyers of Russia’s exports of crude oil and products, as well as virtually all exports of natural gas, are Europe, including Turkey, followed by Asia (especially China), which receives substantial volumes of crude oil and some liquefied natural gas (LNG) from Russia.
Recently, Russia finalized a 30-year, $400 billion deal to supply China with natural gas from fields in Eastern Siberia, which will further increase Russian export revenues. North America also imports some Russian petroleum products, particularly unfinished oils used in refineries.
Although Russia exports less crude oil and less natural gas than it consumes domestically, domestic sales of crude oil and natural gas are much lower in value than exports because of vertical integration of the oil and natural gas industry and subsidized domestic prices.
EIA estimates that Russian domestic sales of natural gas and crude oil were about $20 billion in 2013, based on data from IHS Energy.
Press Release, July 31, 2014; Image: Gazprom