Russia’s oil and gas revenue is seen falling to 0.49 trillion roubles ($6.22 billion), the lowest level since January 2023 amid weak oil prices last month and rouble strengthening, Reuters calculations show.

Oil and gas revenue has been the most important source of cash for the Kremlin, accounting for about a quarter of total federal budget proceeds.

The proceeds would decline 4% from May. According to Reuters calculations, the Russian oil price in roubles declined in May this year to 4,190 per barrel from 6,122 per barrel in May 2024.

Russia’s oil and gas revenue for January-June could decline by 17% year on year to 4.73 trillion roubles, according to Reuters calculations.

The finance ministry will publish its estimates on July 3.

Russia has heavily increased defence and security spending since launching its military campaign in Ukraine, which it calls a special military operation, in February 2022.
Source: Reuters