US EditionRussia's Oil and Gas Budget Revenue Falls 24% to Lowest ...
Oil and gas tax revenue fell to 8.48 trillion rubles, down 24% due to lower prices, stronger ruble, and lost export routes amid sanctions, Finance Ministry said.
- On Thursday, the Russian Finance Ministry reported Russia's budget received 8.48 trillion rubles in oil and gas taxes last year, 24% less than 2024 and the lowest since the decade began.
- Sanctions and market shifts prompted the decline, driven by weaker global oil prices and energy sanctions against Russia, with US blacklisting of Rosneft PJSC and Lukoil PJSC widening the Urals-Brent discount to about $27 a barrel.
- Oil receipts fell sharply, with oil sector revenues dropping more than 22% year on year while gas industry taxes plunged over 30% to 1.35 trillion rubles, reaching pandemic year 2020 levels.
- The Kremlin faces fiscal strain as Russia heavily relies on tax revenues from oil and gas to fill its state coffers, while lower energy receipts reduce funds for military spending and the war in Ukraine.
- Losing European gas customers has shrunk Russia's export markets, while the ruble strengthened 6.4% last year, narrowing revenue despite Russia as a top-three oil producer.
24 Articles
24 Articles
For a long time, Putin was able to increase his war fund with revenues from the oil and gas business. However, sanctions and price development give Putin a damper.
As Russia's budget explodes as a result of the war in Ukraine, oil sales, long as the pillars of the Russian state's public spending, fell by a quarter in 2025, due to European and American sanctions, but not only. Oil prices are also lower than expected.
Russia’s Oil Revenue Slump Hits Budget Where It Hurts
Russia’s oil-and-gas budget suffered a painful blow in 2025. Revenues from the sector fell 24% to 8.48 trillion roubles, the weakest showing since 2020. That matters because oil and gas still bankroll roughly a quarter of the federal budget, and that budget is being chewed up by defense and security spending at a pace hard to ignore. This is not because Russia pumped less crude. Oil prices fell more than 18% last year. That is the sharpest annua…
Overall, 2025 oil and gas sales generated revenues of almost EUR 93 billion, the lowest level since 2020.
Russia's revenues from oil and gas in 2025 were 23.8 percent lower than in 2024, and from $141 billion last year, fell to $108 billion this year, the Ministry of Finance announced.
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