Alexey Gromov, Principal Director on Energy Studies of the Institute for Energy and Finance, commented to the Sputnik radio station on the impact of sanctions on Russia's profits from gas exports.
In an interview with Sputnik radio, Aleksey Gromov noted that the volume of Russian gas supplies actually decreased by more than 20 billion cubic meters, but in fact they do not have a significant impact on export earnings.
Despite the reduction in gas supplies, Russia will receive at least the same income that it received before the sanctions confrontation with Western countries, the expert is sure.“The point here is not how much more Europeans need to reduce the consumption of Russian gas for us to feel it, the point is in much more serious processes that are taking place in the regional gas markets. The sanctions against the energy sector of Russia are being introduced in terms of an extremely tight balance in the world energy markets, which, in fact, are in a state of deficit. In this situation, any reduction in Russian gas supplies is automatically translated into higher prices," he said.
“Even if more countries refuse Russian gas, prices will rise even more and will be translated into our long-term contracts with the remaining consumers, because contracts are arranged that way. Russia, in fact, will receive at least the same income that it received before the sanctions confrontation with Western countries. Last year, the average price of gas at which Gazprom sold natural gas in Europe was $350-400 per thousand cubic meters, now it is $800-900. If we recalculate these prices even for reduced volumes, revenue for the sale of a smaller volume at a higher price by the end of this year will be at least comparable to the figures for 2021,” Alexey Gromov said.
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