Russia’s federal budget revenue from oil and gas sales may increase by around 60% in July from the month before to 844 billion roubles ($9.3 billion), largely reflecting a usual cyclical pattern of tax receipts, Reuters calculations showed on Thursday.

The rise in income from oil and gas – an important source of budget revenue – will help alleviate the budget deficit, which stood 2.6 trillion roubles in the first half of the year.

The monthly deficit narrowed sharply in June as spending fell and revenues picked up, helping Moscow in its efforts to wrest control of Russia’s finances.

Russian oil and gas are subject to a range of Western sanctions, which limit sales to the West and cap the global price of Russian oil.

Russia’s revenue from oil and gas sales is set to rise in July thanks to payments of a profit-based tax on oil production in the second quarter, as well as an increase in mineral extraction tax on oil output in June.

Russia, when setting out its budget parameters for 2023, planned to generate oil and gas revenue of 8.939 trillion roubles, or 34.2% of total proceeds.
Source: Reuters (Reporting by Reuters; Editing by David Holmes)