Russia’s Energy Crisis: What’s Happening?
The National Wealth Fund (NWF) of Russia had a value of $187.97 billion as of October 1. This is 8.1% of the country’s estimated 2022 GDP, according to the finance ministry. On September 1st, that figure was $196.6 billion, or 8.9% of the GDP.
The Russian NWF is a sovereign wealth fund that has grown as a result of the recent profitable energy sales by Moscow. Although Moscow plans to use the NWF this year to close a budget gap, it was created as a pool of funds the government could use for sizable investment initiatives and pension payments. Russia’s economy and budget revenues are expected to decline this year.
According to traders familiar with the loading plan and shipping data. Russian Urals oil shipments from the ports of Primorsk and Ust-Luga in October are anticipated to increase to 6.5 million tonnes. From 5.9 million tonnes loaded in September. According to projections by Reuters, daily Urals loadings from Russian Baltic ports will increase by 6.6% in October. September is one day shorter in October.
3.5 million tonnes of uranium were exported from Primorsk in October, up from 3.4 million tonnes loaded in September. 3.0 million tonnes of uranium were exported and transported through Ust-Luga in October, an increase of 0.5 million tonnes over September.
Market investors anticipate the release of the loading schedules for the entire month of October for the Russian Black Sea port of Novorossiisk. After numerous cargoes were canceled in September, urals oil exports from Russian Baltic ports were reduced.
Russia no longer sells oil and gas to the EU, nevertheless. Additionally, the additional pipelines to China are nowhere near finished, which puts Russia in an odd situation. They have huge energy surpluses compared to the rest of the globe. And nowhere to put it to use.
Kazakhstan receives cheap power from Russia
Russia has agreed to supply Kazakhstan’s mining industry with electricity in a move that few anticipated. With oil costs and inflation out of control, it seems to be another aspect of the perfect storm. That seems to be destroying most of the planet. Russia is becoming more and more isolated as a result of western sanctions.
If you then consider that Kazakhstan received a sizable chunk of the Chinese miners. Who fled there with the Crypto ban. Kazakhstan is now dealing with another issue. Lack of electricity and a grid that isn’t actually designed to support all the miners and in this instance, 1 Plus 1 equals 2.
Now that Russia can export some of its extra energy, the system in Kazakhstan will receive some much-needed respite. And it’s also said that Russia’s access to inexpensive extra power is what led foreign miners from the US, EU, and other countries to largely decide to remain in the country.
According to MEATEC’s head of international relations this capacity is in high demand. Among customers from Germany, the United Kingdom, the United States, Canada, Iran, Japan, New Zealand, and other nations as well as local Russian miners.
Swid declared, “No client is leaving. This is true even though the Rubel are considerably more powerful now than they were at the beginning of the conflict. And you pay in rubles to use the electricity.
