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Russia’s Gas Revenue Plunges to Pre-Russia Levels
Oil remains Putin’s final hope
Russian gas exports continue to collapse and have reached a level unseen since the fall of the USSR. Russia’s Gazprom reported a 24.7% decrease in its natural gas production to 179.45 billion cubic meters in the first half of 2023, compared to the same period last year.
If this export level continues in the second half of the year, Russia will export slightly less than 360 bcm. The last time Gazprom exported at such a level was in the Soviet Union in 1978 when 372.1 bcm were produced.
After Russia’s invasion of Ukraine, European nations began reducing their energy imports from Russia. Gas supplies from Russia, a vital link that created significant dependency, became a major issue, jeopardizing Europe’s ability to support Ukraine in resisting the Russian invasion. The question of how they would survive the winter loomed large, particularly for economies like Germany. Finland and Latvia imported more than 90% of their gas supplies from Russia, while Italy and Germany imported more than 40%.
It required a considerable effort.
As former British Defense Secretary Ben Wallace stated, not many believed Ukraine could survive.
