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Russia’s Oil and Gas Revenues Plunge 50%, Hit Lowest Level of Putin Era
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Russian oil and gas revenues for the federal budget have plummeted by half, marking the largest decline in the Putin era, according to The Moscow Times, citing the Russian Ministry of Finance’s latest report on February 4.
In January 2026, Russia collected just $5.1 billion in taxes from oil and gas, a 50% drop compared to the same month the previous year.
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This represents the lowest revenue since July 2020, and it constitutes only 2% of Russia’s GDP, a record low during Putin’s presidency, The Moscow Times noted.
The key mineral extraction tax (NDP) has fallen nearly 60% compared to January 2025, while export duties have decreased by 44%. The price of Russian Urals oil dropped to $39 per barrel in December and $40 in January, significantly lower than the $59 assumed in the budget plan.
With discounts on Russian oil reaching $27 per barrel due to sanctions, the country’s budget is facing a serious shortfall. With the Russian government preparing to reduce oil shipments to India by 30%, forecasts show a potential $131 billion increase in the 2026 deficit, according to The Moscow Times.
Russia’s largest private oil producer Lukoil has earlier asked the Russian government for budget support after a sharp fall in prices for Russian crude, which is now selling at discounts of nearly 50% to global benchmarks.
Previously, US President Donald Trump announced a major trade agreement with Indian Prime Minister Narendra Modi, in which both sides agreed to reduce tariffs and for India to stop buying Russian oil and buy more from the United States and, possibly, Venezuela.
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