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Russia’s budget revenues from oil and gas sales are expected to drop nearly by half in December compared to last year, falling to 410 billion rubles (USD 5.17 billion) due to declining oil prices and a stronger ruble. Reuters reported this, according to UATV English.
For the full year, revenues are projected to decrease by almost a quarter to 8.44 trillion rubles — below the Finance Ministry’s forecast of 8.65 trillion rubles — based on industry sources and official data on production, refining, and shipments.
Russia last reported its lowest monthly oil and gas income — 405 billion rubles — in August 2020, when global oil prices collapsed during the COVID-19 pandemic.
The Russian Finance Ministry initially expected 10.94 trillion rubles in oil and gas revenue in 2025, but revised the estimate downward in October amid falling global oil prices and concerns over oversupply.
In November, the taxable price of Russian crude expressed in rubles fell by 17.1% compared to October, down to 3,605 rubles per barrel.
Oil and gas revenues remain the Kremlin’s primary source of income, accounting for a quarter of all federal budget revenue. The December decline will hit Russia hard, as the country has sharply increased its defense and security spending since launching its full-scale war against Ukraine in February 2022.
As reported, Russia’s crude oil output last month dropped significantly below its OPEC+ quota, Ukrainian drone strikes disrupted refinery operations, and Moscow struggled to find buyers for its sanctioned barrels.
