Russia’s Oil and Gas Revenues Fell in September
Russia’s Oil and Gas Revenues Fell in September | OilPrice.com
U.S. Energy Secretary Jennifer Granholm…
Oil prices are under pressure…
Russia’s budget proceeds from oil and gas sales declined by 0.9% in September from the previous month, according to official Russian government data published on Thursday.
The Russian budget received $8.13 billion (771.9 billion Russian rubles) from oil and gas sales last month, per the data, which confirmed earlier Reuters estimates that proceeds would be roughly stable month-on-month.
The revenues for September were 4.3% higher compared to September last year.
For the first nine months of the year, Russia’s oil and gas revenues surged by 49.4% annually to $87.5 billion (8.33 trillion rubles), according to the finance ministry data.
Proceeds from oil and gas sales are the most important cash stream for Russia’s federal budget. These revenues have typically accounted for around a third of all federal budget revenues.
Earlier this week, Russia’s Finance Minister Anton Siluanov said that revenues from the oil and gas sector would account for 27% of total federal budget revenue in 2025.
Yet, the value of Russia’s crude oil exports has plummeted by nearly 30% since the end of June as falling international benchmark prices are depressing the value of the cheaper Russian crude grades, Bloomberg estimated last month.
Higher export volumes were unable to offset the slump in oil prices in recent weeks and Russia’s flagship Urals crude is now trading below the $60 per barrel cap imposed by the EU and the U.S. if Russia is to use Western shippers, insurers, and financiers for moving the crude.
Russia is now preparing for lower oil revenues resulting from depressed prices along with a more relaxed tax regime, Bloomberg reported last week, citing a draft three-year budget.
Per that document, oil revenues in Russia would decline by 14% over the next three years—provided international oil prices remain weak. For 2025, the document sees oil revenues of some $120 billion, or 10.94 trillion rubles, which would be a decline of 3.3% from this year. That modest decline would then extend into 2026 and 2027, by which year oil revenues would fall to $110 billion, according to the government’s current projections.
By Tsvetana Paraskova for Oilprice.com
More Top Reads From Oilprice.com
Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews.
ADVERTISEMENT