Russian imports have plunged on the back of the Ukraine War — but revenue from its oil and gas exports has more than made up for it

Russia has reported its largest current account surplus in over three decades, as revenue from the country's oil and gas exports surged. The surge in oil and gas exports came as imports plummeted because of the sanctions.

The current account surplus in Russia hit $58.2 billion in the first quarter of this year, according to the central bank. This was more than double what it recorded in the same period last year. The current surplus account is a key measure of trade and investment flows.

Despite sanctions and boycotts, Russia will still make $321 million from its energy exports in 2022. Oil prices have soared to 14-year highs this year amid fears of trade disruptions over infrastructure damage and sanctions against Russia.

The EU, a major customer of Russian energy, has not cut the country off completely. Russian coal was banned last week by the trade bloc. The EU has not mentioned cutting off natural gas as Europe remains highly reliant on piped gas from the country.

A top EU official said the EU has paid $38 billion for Russian energy. Russia's foreign-exchange reserves rose marginally for the week that ended April 1, the Russian central bank announced Thursday.

The windfall from high oil and gas prices has helped bolster the Kremlin's emergency government reserves.

Russia's finances seem to be holding up despite the Western sanctions. The US Treasury blocked the country from paying its foreign debt until last Monday, when Russia transferred the money in rubles. Thanks to Russia's strict capital controls, the currency has bounced back to prewar levels.

The World Bank said in a report that the Russian economy is expected to contract by 11.2%. According to the data from the ministry, the country's oil and gas revenue in March was 38% lower than they had forecast.