Russia’s energy revenue is expected to skyrocket this year if trading partners continue purchases of oil and gas from the sanction-hit country.
Russia will get an estimated $321 billion in energy exports in 2022, marking a surge of more than a third compared to last year, according to a Bloomberg analysis published Friday.
“The single biggest driver of Russia’s current account surplus continues to look solid,” Bloomberg quoted economists at the Institute of International Finance (IFF), as saying in a report.
“With current sanctions in place, substantial inflows of hard currency into Russia look set to continue.”
The IFF analysts highlighted that a potential energy embargo by the EU, the UK, and the US would lead to an inevitable decline in output of more than 20% and could cost Russia as much as $300 billion in export receipts, depending on price swings. The country is also on track for a record current-account surplus that experts say may reach as high as $240 billion.