Russian oil exports rebound to pre-invasion levels even with Western sanctions

Russian oil exports are at their highest since April 2020 despite Western sanctions imposed on the country after Russian President Vladimir Putin ordered the invasion of Ukraine last year.

"Russian oil exports in March soared to the highest since April 2020 thanks to surging product flows that returned to levels last seen before Russia invaded Ukraine," the International Energy Agency wrote in April's monthly oil market report.

Total exports rose 0.6 million barrels a day to 8.1 million barrels a day in March, with estimated export revenues growing by $1 billion to $12.7 billion, but it is still 43% lower than a year ago. 

Russia's profit comes after the United States and European allies imposed a $60-per-barrel price cap on Russian oil late last year. Putin banned countries with price caps from receiving oil exports.

Other countries, such as China and India, have still been willing to purchase oil from Russia to replace the European countries and the U.S. Additionally, Japan heavily relies on imports to meet its energy requirements and is still buying Russian oil above the $60 price cap.

About 45% of Russia's budget relies on oil and gas exports, according to the International Energy Agency.

Meanwhile, oil prices are down from last year, contributing to Russia's lower oil revenue. A barrel of crude oil cost $82.78 on Friday, compared to $103.82 a year before, according to the Brent crude oil benchmark.