FX.co ★ Russia little affected by energy embargo

Even though the EU allies led by the US have introduced tough sanctions against the Russian energy sector, only the US has imposed a full embargo. EU states are not so lucky with energy inventories. Besides, they are not able to ditch Russian commodities in such a short time. For this reason, the so-called embargo is not as effective as predicted. Russia has increased gas and oil exports to Asian countries, making a solid profit.

According to stats, Russia has noticeably boosted oil and gas sales over the past two months. The government expects to earn about $9.6 billion from energy exports in April, the Ministry of Finance of the Russian Federation noted. Western analysts reckon that in 2022, Russia will yield about $321 billion from the sale of energy resources, which is an increase of more than a third from 2021. In addition, Russia has enough buyers thanks to the generous discounts it has made. With high levels of crude inventories, the country is sure to make a decent hydrocarbon revenue. Money from energy exports is still pouring into Russia as India and China are honoring the existing contracts. They are also not going to abandon energy deliveries from Russia, Business Insider pointed out.

It appears that the sanctions war against the Russian energy sector has had little effect so far. Undoubtedly, energy companies have lost a significant share of profits given today's oil and gas prices. Nevertheless, they still have markets and buyers, thus they will be able to stay afloat.