The invention relates to oil and natural gas production and can be used for recovering hydrocarbons from hydrocarbon-bearing formations, for example, from oil-bearing formations, or, for example, from gas-condensate reservoirs. A method for recovery of hydrocarbons from a hydrocarbon-bearing formation, comprises: recovering a hydrocarbon-containing fluid through at least one production well, separating at least a part of a gaseous mixture from the fluid, injecting a gas through injection well. The separated gaseous mixture (all or a part of it) is combusted with air, which is used as oxidant, in a power plant, and, exhaust gases resulting from said combustion, which comprise nitrogen and carbon dioxide, are discharged from the power plant. Said air and the separated gaseous mixture are mixed and a gas-air mixture resulting from said mixing is compressed prior to said combustion, or the gas-air mixture is ignited during said compression. In the alternative embodiment of the invented method said air and the separated gaseous mixture are compressed and then are mixed to produce the gas-air mixture prior to said combustion, or the gas-air mixture is ignited, as soon as it is mixed. In both embodiments of the invented method the exhaust gases are compressed and used as an injection gas.