Russian energy exports are expected to reach $321 billion by 2022 despite recent sanctions

Despite sanctions, the Russian economy has fared relatively well and remains dependent on its energy exports to many of its strategic trading partners; the Institute of International Finance has estimated that Russia's budget surplus may reach a record high of $240 billion.

In a report cited by Bloomberg News on March 31, IIF economists said that Russia's current account surplus depends on a single factor. "With sanctions in place, Russia is likely to continue to receive substantial inflows of hard currency."

Despite severe Western sanctions levied against Russia since its war with Ukraine began Feb. 24, Russia is expected to earn nearly $321 billion from energy exports in 2022, an increase of more than a third over 2021, Bloomberg News reported.

Depending on global price swings, an energy embargo imposed by the European Union and the leading industrial nations of the G-7 could force Russia to reduce its energy exports by 20 percent and cost $300 billion.

German Finance Minister Christian Lindner said April 4 that Germany will reject a proposed EU embargo on Russian gas imports despite increasing pressure to impose sanctions on Russia’s energy sector over the escalating violence in Ukraine.

5 April 2022