Russia energy revenue may be higher now than before Ukraine war, U.S. official says

Author of the article: WASHINGTON — Russia may be getting more revenue from its fossil fuels now than before its invasion of Ukraine, as global price increases offset the impact of western efforts to restrict its sales, U.S. energy security envoy Amos Hochstein told lawmakers during a hearing on Thursday. “I can’t deny that,” Hochstein…
Russia energy revenue may be higher now than before Ukraine war, U.S. official says

Author of the article:

WASHINGTON — Russia may be getting more revenue from its fossil fuels now than before its invasion of Ukraine, as global price increases offset the impact of western efforts to restrict its sales, U.S. energy security envoy Amos Hochstein told lawmakers during a hearing on Thursday.

“I can’t deny that,” Hochstein told the Senate Subcommittee on Europe and Regional Security Cooperation in response to a question about whether Moscow was making more money now off its crude oil and gas sales than before the war.

The United States and the European Union agreed to ban imports of Russian energy and imposed escalating sanctions to punish the country for its invasion of Ukraine.

While those moves put a chill on global trade in Russian fossil fuels, they also helped to trigger a surge in global prices of oil and gas. At the same time, Russia has been able to sell more cargoes to other buyers, including major energy consumers China and India, by offering it at a discount to oil from other origins.

Hochstein said that while those Russian sales to China and India have been discounted compared with supplies from other countries, the global market price surge means Russia’s revenues are likely higher now.

Hochstein said he has asked India in recent conversations not to purchase too much Russian oil, and said he believes there is a “ceiling” to how much oil India will buy from Russia. He did not provide details. (Reporting by Timothy Gardner; Writing by Richard Valdmanis; Editing by Mark Porter and Bernadette Baum)

Financial Post Top Stories

Sign up to receive the daily top stories from the Financial Post, a division of Postmedia Network Inc.

By clicking on the sign up button you consent to receive the above newsletter from Postmedia Network Inc. You may unsubscribe any time by clicking on the unsubscribe link at the bottom of our emails. Postmedia Network Inc. | 365 Bloor Street East, Toronto, Ontario, M4W 3L4 | 416-383-2300

Read More

Total
0
Shares
Leave a Reply

Your email address will not be published.

Related Posts
Bond Turbulence Far From Over as Inflation Fears Haunt Fed Path
Read More

Bond Turbulence Far From Over as Inflation Fears Haunt Fed Path

Author of the article: Bloomberg News Liz Capo McCormick and Michael MacKenzie (Bloomberg) — Federal Reserve Chairman Jerome Powell beat back the market’s most aggressive predictions for the path of interest rates Wednesday, setting off a dovish surge in stocks and bonds. But in pouring cold water on the prospect for a jumbo-sized 75 basis…
Sri Lanka president to present first budget with hopes for IMF loan
Read More

Sri Lanka president to present first budget with hopes for IMF loan

Author of the article: Reuters Uditha Jayasinghe COLOMBO — Sri Lankan President Ranil Wickremesinghe will on Tuesday slash defense and other expenditures in a bid to win International Monetary Fund (IMF) support as he presents his first budget since taking over as leader of his crisis-hit country. Officials hope the interim budget for the rest…
German manufacturing bottlenecks ease in January, Ifo says
Read More

German manufacturing bottlenecks ease in January, Ifo says

Author of the article: BERLIN — The number of German manufacturing companies reporting bottlenecks and problems procuring intermediate products and raw materials eased to 67.3% in January from 81.9% in December, the Ifo economic institute said on Monday. “Despite this development, companies still have much to worry about,” Ifo economist Klaus Wohlrabe said in a…