Russia’s oil revenues rise despite Western sanctions, IEA reports

• Russia’s oil revenues increased by $900 million in January, totaling $15.8 billion, despite new Western sanctions, according to the International Energy Agency. This rise has been attributed to “deceptive shipping practices” employed by Moscow.
• Russia also exceeded OPEC+ production limits by producing 9.2 million barrels per day and sold all oil above the $60 per barrel price cap set by Western nations.
• The IEA notes that additional Western trade restrictions will take effect either in late February or March.

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Russia’s commercial oil revenues increased by $900 million in January despite the implementation of new Western-imposed sanctions at the start of the year. This comes according to a report released Thursday by the International Energy Agency (IEA).

How did Russian oil revenue increase despite sanctions?

The report states that Russia earned a total of $15.8 billion from oil exports last month. The IEA attributes the increase in revenue to “deceptive shipping practices,” including the use of aging, anonymously owned vessels — commonly referred to as the “dark fleet” — to transport oil.

Additionally, Russia exceeded international oil production and pricing caps last month. The country increased its daily oil output by 100,000 barrels compared to December, reaching 9.2 million barrels per day. This figure surpassed the 8.98 million barrels per day limit set by OPEC+, a coalition of oil-producing nations that includes Russia.

The IEA also noted that all Russian oil sold in January was priced above the $60 per barrel cap set by Western nations.

What happens next?

Despite these figures, the report states that Russia’s fossil fuel industry has not yet experienced the full effects of all sanctions imposed this year. Additional trade restrictions from Western countries are scheduled to take effect in either late February or March.