Russia's income from energy hit a 14-month low in August as Moscow dumps discounted oil

Russian President Vladimir Putin
Russian President Vladimir PutinContributor/Getty Images
  • Russia's oil and gas income dropped to a 14-month low in August, according to Bloomberg.

  • The Kremlin has turned to Asian markets as Western sanctions have pushed away traditional buyers.

  • Moscow is selling its oil at steep discounts as a result, while Gazprom has cut gas flows to Europe.

Russia's revenue from oil and gas sales hit a 14-month low in August, as sanctions have pushed the Kremlin to sell discounted supplies to Asia.

Energy income hit 671.9 billion rubles last month, or $11.1 billion, which is the lowest clip since June of 2021 according to data from the Kremlin's Finance Ministry. The drop in August represents a 13% decrease from July, and 3.4% lower overall compared to a year ago.

The revenue decline came even as the price of Russia's Urals crude climbed as much as 10%.

Western sanctions, which were imposed after Russia's February invasion of Ukraine, have forced the Kremlin to sell its oil at significant discounts below market prices. Russia has pivoted from selling to a largely European market to Asian buyers including India and China.

Meanwhile, state-run giant Gazprom has slashed gas deliveries to Europe via its Nord Stream 1 pipeline and most recently said gas wouldn't return until sanctions were lifted.

And the bleeding in energy revenue could continue if the G7's plan to Russian oil prices gains enough support from top customers in Asia.

While Russian President Vladimir Putin has threatened to stop exporting crude to countries participating in the price cap, it could still result in steeper discounts for other customers.

Read the original article on Business Insider