Oil And Gas Revenues Of The Russian Budget Collapsed By 34%

U.S. sanctions have worked.

The drop in oil and gas revenues of the federal budget accelerated again in November, the Finance Ministry reported on Wednesday.

The treasury collected 530.9 billion rubles of raw materials taxes last month - 34% less than a year earlier. Receipts of the key mineral extraction tax (NAPI) fell by 36%, while export duties fell by almost 40%.

Accumulated total for 11 months, the budget received Br8 trillion in revenues from oil and gas - Br2.3 trillion less than in the same period of 2024. At the same time, the decline is accelerating: at the end of May it was 14%, by the end of August - 20%, and at the beginning of December - 22%.

The Russian budget has been hit by a "toxic mix" of sanctions, falling oil prices and a strong ruble, says Janis Kluge, a researcher at the German Institute for International Security Affairs. After Rosneft and Lukoil were placed on the US blacklist, discounts on Russia's Urals grade reached $20 a barrel, and its average price in November fell to $44.87 - the lowest level since March 2023.

The price of oil in rubles, on which the budget depends to fill the budget, is holding near to 3250 rubles a barrel, and this is also the minimum in 2.5 years.

In early December, Urals quotes, according to Reuters, fell to $41.

As Charter97.org wrote, on October 22, the US imposed blocking sanctions against Rosneft, LUKOIL and their subsidiaries. Soon LUKOIL announced that it was looking for a buyer for its foreign assets.

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