Russia's oil, gas revenues to drop by 46% in January year-on-year, Reuters reports
The Russian federal budget's tax revenues from oil and gas are expected to decrease by 46% this month compared to January 2025, Reuters reported on Jan. 19, citing its calculations.
The development is driven by a stronger ruble and low oil prices, according to the news agency.
Oil and gas revenues account for roughly one-quarter of Russia's federal budget, playing a key role in sustaining Moscow's all-out war against Ukraine.
According to Reuters, revenue will likely drop to roughly 420 billion rubles ($5.42 billion), the lowest level since August 2020.
Globally, oil prices have experienced the steepest decline since the Covid-19 pandemic, despite instability in countries holding the world's largest oil reserves, such as Venezuela and Iran.
Observers have linked this development to an oversaturated market, which in turn stems from a weaker-than-expected economic performance of major economies and the U.S. trade war against China.
Kyiv has long called for tougher sanctions against the Russian fossil fuel sector to undermine its ability to wage war.
The EU, Russia's largest market before 2022, has halted most of its oil imports from Russia and aims to phase out Russian energy supplies completely by the end of 2027.
With demand in Europe declining, Russia has turned to new markets in China, India, and elsewhere, offering its oil at steep discounts.
The Trump administration has also joined sanctions against the Russian energy sector, targeting Russia's oil giants Rosneft and Lukoil earlier this year.
