Russia’s oil and gas revenue in November is seen falling by one third to 0.78 trillion roubles (some $7.5 billion) from 1.21 trillion in October, Reuters calculations showed on Tuesday.

The revenue is likely to have declined this month by 0.18 trillion roubles or 19% from November 2023, the calculations showed.

Oil and gas revenue has been the most important source of cash for the Kremlin, accounting for about a third to a half of total federal budget proceeds over the past decade.

According to Reuters calculations, a major revenue increase in October came from oil profit-based tax payments of 492 billion roubles.

In total, oil and gas revenue for January-November are set to rise by 26% to 10.3 trillion roubles.

For 2024 as a whole, the government budgeted federal revenue of 10.7 trillion roubles from oil and gas sales, up 21% from 2023 when weaker oil prices and lower gas exports reduced the revenue by 24%.

The 2024 target was revised down from initial plans for 11.5 trillion roubles.

Russia has heavily increased defence and security spending since launching its invasion of Ukraine, what it calls its special military operation, in February 2022, leading to two consecutive annual deficits exceeding 3 trillion roubles, or about 2% of GDP.
Source: Reuters (Reporting by Reuters; editing by Jason Neely)