Russia’s Oil and Gas Revenues Dip to January 2023 Low

Russia saw its revenues from oil and gas for the budget crash by 33.7% in June from a year earlier—to the lowest level since January 2023, amid weaker commodity prices and a stronger Russian ruble.

For June, total budget revenues from oil and gas dipped to $6.3 billion (494.8 billion Russian rubles), according to data from Russia’s finance ministry published on Thursday.

Revenues for the first half of the year also fell compared to the same period of 2024. Russia received $60 billion (4.73 trillion rubles) from oil and gas in January to June 2025, down by nearly 17% from a year earlier, the official data showed.

Lower budget income from oil and gas is a problem for Russia’s war economy, in which spending on defense and military is now at its highest since the end of the Cold War.

Russia said at the end of April it expects 24% lower revenues from oil and gas this year compared to earlier estimates, following the oil price crash that began in early April and sank the price of its flagship Urals crude close to the $50 per barrel mark.

Despite the oil price spike for two weeks in June during the Israel-Iran conflict, oil and gas revenues for Russia continue to drop compared to last year.

Moreover, the combined net profits of Russia’s oil and gas companies nearly halved in the first quarter from a year earlier, while petroleum revenues for the budget have been falling with the decline in oil prices in recent months.

The drop in oil prices, the tightening of Western sanctions, and the stronger Russian ruble have combined to weigh on company profitability.

Every third ruble going into Russia’s budget comes from the oil and gas companies.

Meanwhile, Russia’s seaborne crude oil shipments barely budged in late June, holding near two-month lows despite a modest uptick from major ports, according to Bloomberg tracking data.

By Charles Kennedy for Oilprice.com

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