Iran war doubles Russia's main oil revenue to $9 bln in April, Reuters calculations show
Reuters calculations show Russia’s oil production tax will nearly double to 700 billion roubles as higher prices boost revenue.
- Reuters calculations show Russian mineral extraction tax revenue will double to $9 billion in April, driven by an energy crisis triggered by Israeli strikes on Iran.
- Following Israeli strikes on Iran in late February, the Strait of Hormuz shut, disrupting global oil and LNG flows and sending Brent futures past $100 per barrel.
- Urals crude prices jumped to $77 per barrel in March, marking a 73% surge from February levels and directly driving the doubling of tax revenue.
- Moscow faced a 4.58 trillion rouble budget deficit during January-March, and the current revenue surge provides immediate fiscal relief for the world's second-largest oil exporter.
- Ongoing attacks by Ukraine on energy infrastructure threaten future production and earnings, potentially limiting long-term revenue gains despite the 7.9 trillion rouble 2026 budget target.
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26 Articles
The world's second-largest oil exporter sees unexpected profit from market fluctuations.
Hard number: Russia’s oil windfall
The Iran war has pushed Brent crude prices to $100 per barrel, up from around $70 before the conflict began. One of the main beneficiaries was a country not fighting in the war: Russia. The Kremlin relies heavily on its oil and gas exports, which account for between 30% and 50% of the government’s budget. As such, the global surge in prices has provided a welcome boost to Moscow amid its own war effort in Ukraine.
Iran war doubles Russia's main oil revenue to $9 billion in April
In a remarkable twist for Russia's economy, oil tax revenues are projected to soar to $9 billion by April, doubling amidst the turbulent global energy landscape fueled by the ongoing conflict with Iran. This sharp increase in oil prices is not just benefitting Russia; it showcases how geopolitical tensions can have far-reaching impacts on energy markets worldwide.
Exclusive: Iran war doubles Russia's main oil revenue to $9 bln in April, Reuters calculations show
The Reuters calculation is some of the first concrete evidence of a windfall for Russia, the world's second-largest oil exporter, from the Iran war, which oil traders say has triggered the most serious energy crisis in recent history.
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