Russia faces serious oil revenue decline

Russia faces serious oil revenue decline

In the first half of the year, the Russian budget experienced a significant decline of 47% in oil and gas revenues, which amounted to 3.38 trillion rubles or approximately $37 billion.

The Ministry of Finance reported that oil and gas revenues of the Russian budget decreased by 47% to 3.38 trillion rubles from January to June.

In June, there was a year-on-year decline of 26.4% in oil and gas revenues, reaching 528.6 billion rubles. This decline was less severe than the 36% drop observed in May.

Russia's energy revenues have been negatively impacted by both the western price cap on its oil and the closure of the Nord Stream gas pipelines to Europe, which were sabotaged in September of the previous year. The responsible party for the pipeline sabotage has yet to be determined.

The budget deficit for Russia reached $42 billion in the first five months of the year, surpassing the plan for the entire year of 2023 by 17%.
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Michael Rothery
ES_Not a Game - Michael Rothery