- Oil and Gas Revenue Drops a Third as War Costs Climb.
- US Sanctions Deepen Discount on Russian Crude.
- Quarterly Tax Cycle Amplifies Month-to-Month Collapse.
Russia’s oil revenues took a significant hit in November, plummeting by nearly a third compared to the same month last year. This decline was driven by lower crude prices and a stronger ruble, which squeezed state income. According to Bloomberg’s calculations based on finance ministry data, oil-related taxes fell by 32%, totalling 413.7 billion rubles (about $5.3 billion), reports gCaptain.
Combined Energy Revenue Declines 34%
Overall, oil and gas income dropped 34%, landing at 530.9 billion rubles. This decline adds more strain to government finances, which are already under pressure from heavy military spending in the ongoing war against Ukraine, now entering its fourth year. So far in 2025, energy industries have contributed roughly a quarter of Russia’s budget.
Lower Crude Prices and Sanctions Squeeze Moscow
Global oil prices have softened in anticipation of an impending supply glut, while Russian crude has been facing a growing discount. This gap widened after former US President Donald Trump imposed sanctions on Russia’s largest oil producers, Rosneft and Lukoil, aiming to pressure President Vladimir Putin to halt the conflict.
Quarterly Tax Schedule Drives Month-to-Month Collapse
Each month, Russia’s oil revenue has dropped by nearly half, partly because its profit-based oil tax is only paid four times a year, in March, April, July, and October, resulting in reduced inflows for November.
Urals Crude Price Falls 17%
The finance ministry’s calculations were based on the Urals benchmark, which averaged $53.68 per barrel in October, marking a 17% decline from the previous year. This weaker price directly impacted tax assessments linked to export values.
Stronger Ruble Further Cuts Revenue
A stronger ruble contributed to the revenue decline, as it reduced the ruble income from dollar-denominated oil sales. In October, the ruble averaged 81.0089 per dollar, about 15% stronger than a year earlier, meaning exporters received fewer rubles for each barrel sold overseas.
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Source: gCaptain
