From January through June, the Russian federal budget saw oil and gas revenues shrink by nearly half, dropping 47 percent year over year to 3.382 trillion rubles. This is the key finding reported by the Ministry of Finance of Russia. The explanation offered emphasizes that the previous year’s high base and a decline in crude prices, particularly for Ural crude, were major factors behind the slide in revenues.
Additionally, the period saw a decline in natural gas prices and a reduction in export volumes, both of which added downward pressure on overall oil and gas receipts. The ministry indicated that, despite these pressures, certain measures aimed at stabilizing the sector may contribute to a recovery in the second half of 2023. These measures include discount payments designed to cushion the impact on oil companies and an overall improvement in price dynamics.
On July 7, the Ministry of Finance reaffirmed that in January-June, Russia’s oil and gas revenues for the federal budget fell by 47 percent year-on-year, reaching 3.382 trillion rubles.
Earlier commentary noted that when oil prices dip to around $50 per barrel, revenue outcomes can be markedly affected, underscoring the sensitivity of budgetary inflows to global energy market movements.