Russia expects prices for its natural gas exports to soar 140% this year as Moscow cuts supplies to Europe, report says

  • Russia expects prices for its natural gas exports will soar to $730 per 1,000 cubic meters this year, according to Reuters. 
  • That represents a 140% jump from 2021 and a 39% hike from its previous forecast for 2022.
  • Gas flows to Europe have steadily declined this year following Russia’s invasion of Ukraine.  

Russia expects the price of its natural gas exports will more than double this year compared to a year ago, according to an economy ministry forecast seen by Reuters.

This year’s average price is now seen at $730 per 1,000 cubic meters, up 140% from 2021 and up 39% from the Kremlin’s previous forecast for 2022. 

European gas prices have skyrocketed since Russia’s invasion of Ukraine as state-run energy giant Gazprom reduces flows via the Nord Stream pipeline. 

After this year, Russia sees its gas export prices retreating to $471.8 in 2023 per 1,000 cubic meters, $383.9 in 2024 and $331.6 in 2025 — though they will still be above pre-invasion levels.

But Russia expects to continue trimming its pipeline gas exports. After falling to 170.4 billion cubic meters in 2022 from 205.6 billion in 2021, exports will slip further each year and reach 155.3 billion by 2025.

Still, the document viewed by Reuters showed how Russia plans to continue benefiting from a tight energy market and strong buyers in Asia.

High gas prices will offset the decline in export volume, while crude oil exports will remain roughly flat. Moscow predicts total energy export revenue will jump 27% this year to $337.5 billion.