Russia’s energy revenue is expected to skyrocket this year if trading partners continue purchases of oil and gas from the sanction-hit country.

Russia will get an estimated $321 billion in energy exports in 2022, marking a surge of more than a third compared to last year, according to a Bloomberg analysis published Friday.

“The single biggest driver of Russia’s current account surplus continues to look solid,” Bloomberg quoted economists at the Institute of International Finance (IFF), as saying in a report.

“With current sanctions in place, substantial inflows of hard currency into Russia look set to continue.”

The IFF analysts highlighted that a potential energy embargo by the EU, the UK, and the US would lead to an inevitable decline in output of more than 20% and could cost Russia as much as $300 billion in export receipts, depending on price swings. The country is also on track for a record current-account surplus that experts say may reach as high as $240 billion.

Russia is the world’s largest natural gas exporter and third largest oil exporter. Some countries, including the US and the UK, have placed a ban on imports of Russian energy as part of sanctions over the conflict in Ukraine. However, the EU has refused to do so, while the US and Britain continue to buy Russian oil and gas.

Global crude prices have surged over 30% so far this year, with prices pushed beyond $100 per barrel on concerns over supply shortages from Russia at a time of high global demand. Gas prices have also hit multi-year highs.

In March, Russian President Vladimir Putin said that Russia will only accept payment for energy exports in rubles from countries deemed “unfriendly” by the Kremlin due to their sanctions policies.

Source: Agencies