Sales to foreign customers are expected to be down significantly for the second consecutive year, RBK reports
Exports of Russian piped gas will decline this year by as much as 34%, Russian business daily RBK reported on Monday, citing the latest projections issued by Russia-based strategy consultancy Yakov & Partners.
The delivery of Russian natural gas via pipelines dropped by nearly 50% in 2022, from 206 billion cubic meters (bcm) to 122 bcm, according to analysts, who attribute the decline to the pressure of Ukraine-related sanctions and to Moscow’s requirements for EU buyers to pay for Russian gas supplies in rubles instead of dollars or euro.
This year, the pipeline gas flows are expected to drop further to 80 bcm, experts said, adding that the loss of the EU market is seen as the key reason for the drop.
“The enforced decline in gas production in 2023 amid the loss of the EU as a key export market could amount to nearly 30 bcm,” the consultancy added.
In 2022, Russia’s revenues from exports of gas soared to $138 billion due to skyrocketing prices for the fuel in the EU and uncertainty concerning the shift of Russian gas supplies.
This year, gas export revenues are expected to fall by 68.8% to $43 billion amid declining prices for the fuel and dropped volumes of sales. In addition, analysts expect export earnings to recover to only $55 billion by 2030.
After the sanctions were imposed, supplies through Ukraine and by one of the two threads of the Turkish Stream pipeline remained the only routes left for Russian gas flows to the EU. The second thread of the pipeline is used for delivering gas to Türkiye, while China is increasing imports of Russian natural gas via the Power of Siberia pipeline.
