How is Russia able to earn billions to fund its war through oil, gas, and metal?

Russia’s revenues from the sale of oil and gas in April will almost double compared to the previous year and amount to $14B, thanks to rising prices.

According to Reuters, revenues from the sale of oil and gas are crucial for Russia’s commodity-based economy and for financing the war against Ukraine. For 2024, the Russian government budgeted ₽11.5T in revenue from the sale of hydrocarbons, which is 30% more than in 2023.

However, due to Western sanctions, the export of liquefied natural gas (LNG) from Russia may fall in the next four years. The Ministry of Economy of the Russian Federation predicts that LNG production will stagnate at the level of 38.6 million tons per year in 2025-2027 under conservative and baseline scenarios.

Ukrainian metallurgical industry experts stress that easing EU sanctions enabled Russia to earn billions for the war.

As well, during the current discussion of a new package of sanctions, Kyiv needs to achieve stricter sanctions for Russian metal products.