Russia’s oil and gas revenue likely to halve in December
Russia’s state oil and gas revenue is projected to decline sharply in December, dropping nearly by half year-on-year to 410 billion roubles ($5.17 billion), according to Reuters calculations released on Friday, News.Az reports.
The downturn is driven by lower crude oil prices and a stronger rouble.
For the full year, oil and gas income is expected to fall by almost 25% to 8.44 trillion roubles, below the Finance Ministry’s forecast of 8.65 trillion roubles. The estimates are based on data from industry sources and official statistics covering production, refining, and supplies.
Russia reported the lowest monthly oil and gas revenues of 405 billion roubles in August 2020, when oil prices tumbled during the COVID-19 pandemic.
Oil and gas revenue is the number one source of cash for the Kremlin, making up a quarter of total federal budget proceeds. The decline is painful for Russia, which has heavily boosted defence and security spending since launching its military campaign in Ukraine in February 2022.
Ukraine and its Western backers have repeatedly said they want to force Russia, the world's second-largest oil exporter, to stop its war by undermining its economy.
The Finance Ministry had initially expected 10.94 trillion roubles in oil and gas revenues this year, but revised down its forecast in October to account for declining global oil prices, which have been falling, pressured by worries over a supply glut.
In November, the price of Russian oil in roubles used for tax purposes slumped 17.1% from October to 3,605 roubles per barrel.
The Finance Ministry will publish its oil and gas revenue estimates for Decemberon January 14.
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