Russia Expected to See Highest Gas Profits in History in 2022 Despite U.S. Sanctions
An analyst with the German Science and Politics Foundation is projecting that Russia will see the highest gas profits in history for 2022 despite sanctions from the U.S. and Western powers.
“Almost half of the Russian budget is based on transactions with oil and gas. The state earns enormously from production taxes and export duties,” said Janis Kluge, a researcher who studies primarily Eurasia-based economics.
“It receives the income in rubles, and the amount is determined by two factors: firstly, by energy prices on the world market and, secondly, by the exchange rate of the ruble,” Kluge added.
Kluge believes that the sanctions are backfiring and actually causing Russia to make additional profits considering the West cannot afford to deny their energy exports.
“The gas price on the spot markets has quintupled within the past year. That means Gazprom will have record revenues,” he said.
“Russia planned the national budget with a dollar-ruble exchange rate of 72, but now the ruble is around 85, much weaker, but with a view to energy exports this is an advantage. If we multiply the oil price by the ruble exchange rate, it shows that Moscow expected revenues of around 4,500 rubles per barrel of oil, but is getting much more, around 7,000 rubles,” Kluge added.
The analyst believes that the effect will be to lessen Russian inflation, and the sanctions will not cause a major impact on the Russian economy as a result.
Russia has also been aided by China’s refusal to join in on the West’s crusade to prop up the globalist Ukrainian puppet government, as Big League Politics reported:
“China is refusing to budge on their decision not to inflict any trade sanctions on Russia amidst the current Ukrainian conflict.
“As we have repeatedly said, we believe that sanctions are not an effective solution to solve problems. It is China’s consistent position that we oppose all illegal unilateral sanctions. China and Russia will continue to carry out normal trade cooperation following the spirit of mutual respect, equality and mutual benefit,” Chinese Foreign Ministry Spokesperson Wang Wenbin said in a press conference on Tuesday.
The Chinese are taking a more measured approach regarding the conflict than Western powers, many of whom have called Russian President Vladimir Putin the next Hitler amidst a frenzied war propaganda effort that makes the build-up to the Iraq War look like child’s play.
“China always supports and encourages all diplomatic efforts conducive to the peaceful settlement of the Ukraine crisis and welcomes the launch of the peaceful negotiations by Russia and Ukraine. We have noted that the two sides have agreed to conduct a new round of negotiations shortly. We hope they can keep up the dialogue and negotiation process to seek a political settlement that accommodates both sides’ legitimate security concerns, achieves common security in Europe and promotes Europe’s lasting peace and stability,” Wang stated.
“The Ukraine issue has complex historical context and realistic factors. The Chinese side regrets the casualties. The current situation is not what we want to see. The top priority is for all parties to exercise necessary restraint to prevent the situation on the ground in Ukraine from deteriorating or even spiraling out of control. The life and property safety of civilians should be effectively guaranteed, and in particular, large-scale humanitarian crises should be averted,” he added.”
The West’s attacks on Putin have just shown that they are a paper tiger. Expect more countries to reject globalism in the years to come as a result.