Proceeds from oil and gas sales for Russia’s federal budget are set to decline by around 25% to some 719 billion roubles ($7.81 billion) this month from November, mostly due to a fall in mineral extraction tax (MET) takings, Reuters calculations show.

The finance ministry is expected to disclose the December budget proceeds in early January. In December 2022, official oil and gas revenues came in at 932 billion roubles.

According to Reuters calculations, MET proceeds from oil are set to decline by around 140 billion roubles this December.

An increase in subsidies to refineries under so-called damper payments will also reduce revenues.

Russia’s energy revenues have been squeezed by Western sanctions such as price caps and an embargo on seaborne oil exports, and by the closure of the Nord Stream gas pipelines to Europe, which were blown up in September 2022.

Reuters’ calculations are based on data from industry sources and official statistics on oil and gas production, refining and supplies on domestic and international markets.

The Russian government had budgeted for federal revenues of 8.939 trillion roubles from oil and gas sales in 2023, or some 34.2% of total budget revenues.

Taking into account the projected figures for December, the revenues for this year look set to decline to 8.891 trillion roubles from 11.586 trillion in 2022, when oil prices were higher.
Source: Reuters (Reporting by Reuters; Editing by Kevin Liffey)