Russia's oil export revenues drop to lowest figure since 2023
In April, Russia earned US$13.2 billion from exports of crude oil and petroleum products – the lowest figure in nearly two years.
Source: International Energy Agency (IEA), cited by Bloomberg
Details: The decline was driven by falling global oil prices and weak demand. According to IEA estimates, the average price of Russian crude oil fell to US$55.6 per barrel in April – below the G7 price cap.
"Russian oil prices followed international trends," the IEA report stated. "Increased trade uncertainty is expected to weigh on the world economy and, by extension, oil demand."
Brent crude has fallen by more than 14% since the start of the year, driven by concerns over the impact of US tariff policies and reduced demand in China. An increase in Iranian oil supplies may also contribute to a potential market surplus.
Russia’s budget is particularly sensitive to oil price fluctuations, as the oil and gas sector accounts for about 30% of its revenues. In April, Russia’s budget deficit widened, potentially complicating the financing of military spending amid the ongoing war in Ukraine.
Despite lower revenues, Russian oil exports rose to 7.55 million barrels per day in April. Exports of the premium VSTO blend reached a record high of over 1 million barrels per day.
"The deeper discounts attracted alternative buyers," the IEA noted, adding that Chinese refineries reduced purchases of the VSTO blend from Russia’s Far East.
Total oil production in Russia increased to 9.3 million barrels per day in April, driven by both export growth and the partial resumption of refinery operations following a reduction in Ukrainian drone attacks.
Read also: Russian leaders see potential truce as a lifeline for struggling economy
Background:
- In the first quarter of 2025, Russia’s goods exports fell to US$94.9 billion, a 6.8% decrease compared to the same period last year.
- Russian oil revenues remain near a two-year low, despite increased export volumes.
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