Russian President Vladimir Putin.
Mikhail Metzel/Sputnik/AFP via Getty Images
- Russia bagged $24 billion in just three months to the end of May from its energy sales to Asia.
- China snapped up a staggering $18.9 billion worth of Russian energy products, Bloomberg reports.
- Asia has been a keen buyer of cheap Russian energy supplies while the EU and US back out.
Russia raked in $24 billion from selling energy to India and China in just three months following its invasion of Ukraine, according to Bloomberg.
China spent a staggering $18.9 billion on Russian oil, gas and coal in the three months to the end of May, which is almost double the amount it bought last year, while India splashed out $5.1 billion in the same time period.
Overall, Russia earned an extra $13 billion in revenue from India and China’s energy shopping spree compared to the same time last year.
Western sanctions and boycotts on Russian energy over its war with Ukraine have backfired after Asian countries including India and China snap up its commodities at discounted prices. The two countries now account for 50% of Russia’s seaborne oil exports, undermining efforts by the US and EU to punish Russia for its unprecedented aggression.
This year alone, Russia is on track to earn $285 billion from the boost in oil and gas sales, Bloomberg Economics forecasts.
With the sanctions in place, it’s sent energy prices across the globe shooting upwards as a result of squeezed supply, fanning the flames on already hot-inflation as well as sparking recession fears.
But while Russia is enjoying a massive windfall from its energy exports right now, a recent Bloomberg report suggested it may not be able to do so for much longer. Cargoes bound for Asia fell by more than 15% from the highs seen in May, in a sign that demand may be drying up.