Russia's oil revenues plummet by a third due to falling prices and a stronger ruble
Photo: EPA

Russia's oil revenues to the state budget in July 2025 fell by a third due to lower global oil prices and a stronger ruble. About writes Bloomberg citing data from the Russian Ministry of Finance.

Tax revenues from the oil and gas industry amounted to about 710.4 billion rubles ($8.9 billion), down 33% year-on-year.

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Total oil and gas revenues fell by 27% to RUB 787.3 billion ($9.82 billion).

The oil and gas sector accounts for approximately one-third of Russia's budget. Due to the significant costs of the war in Ukraine, the drop in revenues from this sector is increasing the financial pressure on the country.

Sanctions by the West, in particular the European Union, which lowered the price cap on Russian oil and banned imports of petroleum products, as well as threats of new restrictions from the United States, continue to curb energy export revenues.

At the same time, in July, compared to June, the Russian budget revenues from the oil industry increased by 71%. This is due to the fact that one of the main oil taxes is paid quarterly.

The strengthening of the ruble has also reduced the Kremlin's revenues. Now, oil companies receive fewer rubles for each barrel, even though prices in dollars have risen.

Thus, oil producers received 4,711 rubles per barrel of Urals oil in rubles, compared to 6,127 rubles last year.

In addition, the Russian budget cut subsidies to oil refineries, which cover the difference between fuel prices in Russia and abroad, by 58% compared to last year, to 59.9 billion rubles.