"No Impact from Western Sanctions"... Putin Earned More Money Than Before Ukraine Invasion

Putin "Russia Cannot Stop Gas Imports", "Unaffected by Sanctions, Companies' Profits Actually Increase"

Russian President Vladimir Putin attended the meeting of the former Soviet 'Customs Union' consultative body, the 'Supreme Eurasian Economic Council,' via video conference in Moscow on the 27th of last month (local time). [Image source=Yonhap News]

[Asia Economy Intern Reporter Kim Nayeon] Despite the West's stringent sanctions following the invasion of Ukraine (February 24), it has been revealed that Russia is earning significantly more revenue from energy exports than before the invasion.

According to recent foreign reports, Amos Hochstein, the U.S. State Department's Special Envoy for Energy Security, who appeared at a Senate European and Regional Security Cooperation Subcommittee hearing, responded to the question of whether Russia is making more money than before the Ukraine invasion by saying, "It cannot be denied."

He noted that although Russia sells crude oil to China and India at lower prices than other oil-producing countries, the surge in international oil prices is expected to increase Russia's profits.

In fact, the International Energy Agency (IEA) stated last month that Russia's crude oil sales revenue was estimated at an average of $20 billion per month, a 50% increase compared to the beginning of the year, and explained that most of Russia's crude oil exports are directed toward EU member countries.

The West, including the United States and Europe, has expanded energy sanctions against Russia. The UK and the US imposed bans on Russian oil in March, early in the Ukraine war, and Europe has pledged to reduce Russian oil imports by 90% by the end of the year, following coal bans. Since the outbreak of the war, oil and gas prices have been rising sharply due to Western energy sanctions against Russia.

However, Western sanctions have not inflicted significant damage. Russia, blocked from Western markets, is selling large quantities of oil at low prices to major energy consumers China and India.

Russia's government revenue from the energy sector continues to increase. According to Bloomberg, income from the oil and gas sector rose more than double from 794.5 billion rubles in January to 1.7977 trillion rubles in April.

Earlier, Russian Foreign Minister Sergey Lavrov stated in a recent broadcast interview, "Considering the oil prices formed by Western policies, Russia has not suffered any losses," and claimed, "Russia's energy export performance will significantly improve this year." In response, Russian President Vladimir Putin said on the same day, "The West will not be able to cut off Russian oil and gas for years."

Meanwhile, according to AFP, on the 9th (local time), Russian President Vladimir Putin met with young entrepreneurs in Moscow and asserted that despite EU sanctions such as the ban on Russian oil imports, Russia remains unshaken and, rather, corporate profits are increasing.

This content was produced with the assistance of AI translation services.