Russia's Oil and Gas Revenues Drop to 2021 Levels 0 11

The Russian budget revenues from oil and gas for January will amount to 420 billion rubles, a decrease of 46% compared to January of last year, Reuters reports.

This is the lowest figure since August 2020, when demand for fuel fell due to the coronavirus pandemic, the agency notes. Currently, oil and gas revenues account for about a quarter of all revenues in the Russian budget and are considered the main source of funding for the war against Ukraine.

Reuters' calculations are based on data regarding oil and gas production in Russia, as well as their processing and supply to domestic and foreign markets, writes Current Time.

One of the reasons for the decline in revenues was the drop in prices for Russian oil: in December, it fell by 53% compared to December 2024, reaching 3,073 rubles per barrel.

Russian authorities have also acknowledged the decline in oil revenues. In December, according to the Ministry of Finance, they decreased to 447.8 billion rubles (compared to 790.2 billion rubles in 2024).

Starting February 1, the European Union will also lower the price cap on Russian oil from $47.6 to $44.1 per barrel. Western countries have decided to set a price ceiling on Russian crude oil due to Russia's full-scale war against Ukraine.

Initially, in December 2022, the price cap was set at $60 per barrel, and in September 2025, it was lowered to $47.6.

Overall Picture. Sanctions

Economist Yanis Kluge, who tracks the state of the Russian budget, wrote a few days ago:

"Sanctions are causing damage: Russia has just recorded the worst monthly tax revenues from oil and gas since the beginning of the full-scale war (in terms of GDP). Even in nominal terms, only January 2023 was worse... Total oil and gas revenue in December amounted to only 447.8 billion rubles. Due to the recent G7 sanctions against 'Rosneft' and 'Lukoil', as well as Trump's tariff pressure on India, Russian oil exports are suffering."