Russia's Oil and Gas Revenues Hit Hard by Sanctions and Falling Prices, Down 34% in November

In November, the drop in oil and gas revenues for the federal budget continued to accelerate, according to The Moscow Times, citing the Ministry of Finance's report on December 3.

The treasury collected 530.9 billion rubles (approximately $6.64 billion) in resource taxes last month, a 34% decrease compared to the same period last year. Revenues from the key mineral extraction tax (MET) fell by 36%, while export duties declined by nearly 40%.

Over the first 11 months of the year, the budget received 8 trillion rubles ($107.67 billion) from oil and gas revenues, which is 2.3 trillion rubles ($30.67 billion) less than in the same period in 2024. The pace of decline is speeding up: it was a 14% drop by the end of May, 20% by the end of August, and 22% by early December.

According to Janis Kluge, a researcher at the German Institute for International Security Studies, the Russian budget has been impacted by a “toxic mix” of sanctions, falling oil prices, and a strong ruble. After Rosneft and Lukoil were blacklisted by the US, discounts for Russian Urals oil reached $20 per barrel, and its average price in November dropped to $44.87, the lowest level since March 2023.

The price of oil in rubles, which is crucial for budget revenues, remains around 3,250 rubles per barrel, the lowest in 2.5 years.

Read more

Category

War in Ukraine

Which of Russia’s Top 20 Oil Refineries Has Ukraine Struck?

Feb 04, 2025 17:58

Meanwhile, India’s state-owned oil refineries have restarted purchasing discounted Russian crude oil after several months of hesitation, Bloomberg reported.

Sources reveal that Indian Oil Corp. and Bharat Petroleum have bought Russian crude for January delivery through non-sanctioned intermediaries, benefiting from larger quantities and more substantial discounts offered by new trading entities operating outside Western sanctions.

The shipments were reportedly secured at approximately $5 per barrel below the current market prices, compared to discounts of about $3 per barrel just a month ago.

Earlier, an oil tanker that was used to transport Russian crude has sunk off the coast of Senegal, raising additional concerns over the safety of vessels operating in the shadow fleet responsible for Russian oil exports.

On the Frontline of Truth

Our reporters risk their lives to show what’s really happening in Ukraine. Your support keeps them safe, equipped, and reporting.

SUPPORT FRONTLINE REPORTS