Russian economy faces 113-billion-ruble black hole as oil and gas hit

Russia’s Ministry of Finance has reported on its Telegram channel that the Russian federal budget of Russia is expected to earn less than 113.6 billion rubles from oil and gas revenues in April, based on preliminary data.

Russia’s economy has been hit hard by sanctions but continues to be a major global energy producer, especially gas.

Russian energy giant Gazprom is increasing gas supplies to China and expects soon to reach the maximum planned level through a Siberian pipeline, its chairman said last week, highlighting Beijing’s importance as his country’s top export market in the face of Western sanctions over its invasion of Ukraine.

Gazprom is negotiating with China over a possible additional supply project across neighbouring Mongolia, Viktor Zubkov said at a government-organized economic forum. He said the company is open to serving other Asian markets.

Chinese leader Xi Jinping’s government sees Moscow as a diplomatic partner in opposing U.S. domination of global affairs and has refused to criticise its invasion of Ukraine. Beijing has called for a cease-fire and negotiations but not a Russian withdrawal.

China’s imports from Russia, mostly oil and gas, surged 31.3 percent over a year ago in January and February to $18.6 billion.

Also at the forum, the deputy chairman of the Chinese Cabinet’s planning agency said Beijing will balance its plans to reduce carbon emissions with its need for energy security. China is the biggest emitter of climate-changing industrial gases.

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