Russia’s revenue from oil and gas exports decreased by almost 40% in January as a price cap and Western sanctions shrunk earnings from Moscow’s most profitable exports, the International Energy Agency (IEA) said today.

Russia’s revenue from oil and gas exports they reached $18.5 billion in Januarydown 38 percent from the $30 billion in revenue in January 2022, a month before its invasion of Ukraine, according to IEA data the international organization shared with Reuters.

IEA executive director Fatih Birol said Western measures targeting Russia’s energy exports have achieved their goals by stabilizing oil markets and limiting Moscow’s revenues from oil and gas exports.

“Our expectation is that this decline in oil and gas revenues will be steeper in the coming months. And even steeper in the medium term, as a result of the lack of access to technologies and investments,” Birol told Reuters.

International sanctions imposed on Russia in response to the war in Ukraine, including the $60-a-barrel cap on crude oil imposed by the Group of Seven (G7), have left Russia’s Ural brand selling at a large discount relative to Brent.

The 27 countries of the European Union have also banned Russian oil exports by sea since December, and have imposed sanctions on the export of technology to Russia needed for oil refining. The United States and Britain have also imposed sanctions on Russian oil exports.

Moscow used oil and gas revenues – last year about 11.6 trillion rubles ($154.68 billion) – to cover its fiscal spending, and was forced to start selling its international foreign exchange reserves to to cover the deficit created by the cost of its invasion of Ukraine.

Europe the same time trying to wean itself off Russian natural gasafter Moscow halted gas shipments to the EU following its military invasion of Ukraine in February 2022. This sent European gas prices soaring to record highs and countries scrambling for alternative supplies and to launch energy saving measures.

Birol said EU countries had made progress in achieving energy security over the past year, including the rapid expansion of renewable energy sources and heat pumps to reduce the need for fossil fuels.

But risks remain, he said, and countries need to continue efforts to save energy and secure supplies. Europe’s ability to secure enough natural gas could be challenged by rising demand from China, or if Russia cuts the gas it still sends to Europe.

“We have every reason to work as hard as we did last year,” said Birol.