Russia's oil and gas revenues drop by almost 30% in July 2025
Russia's oil and gas revenues dropped by 28% in July 2025.
Source: Russia's Finance Ministry, as reported by The Moscow Times, an independent Amsterdam-based news outlet
Details: In July, the Russian budget received RUB 787.3 billion (about US$8.75 billion) from oil and gas – a 28% drop compared to the same period last year. This drop is driven by declining global oil prices and a stronger rouble.
This marks the third consecutive month of roughly 30% year-on-year declines. Over the first seven months of 2025, revenues fell by RUB 1.2 trillion (US$13.3 billion) to RUB 5.52 trillion (US$61.3 billion) – a 19% decrease compared to the same period in 2024.
Tax revenues from mineral extraction fell sharply by 38% to RUB 634.1 billion (US$7.05 billion), with oil companies contributing RUB 543.4 billion (US$6.04 billion). Gas revenues dropped by more than half, down 53% to RUB 51.1 billion (US$568 million).
As a result, the Russian government has revised its revenue forecast, lowering expected oil and gas income from RUB 10.94 trillion (US$121.6 billion) to RUB 8.32 trillion (US$92.4 billion). This shortfall will be covered by the National Wealth Fund (NWF), whose reserves have already dropped nearly threefold to RUB 4 trillion (US$44.4 billion).
The 18th EU sanctions package may deal a further blow to the budget. It introduces a flexible price cap, replacing the fixed US$60 per barrel with a cap set at 15% below the market price – around US$47.6.
Background:
- In July, Russia’s state oil and gas revenues were projected to fall by 37% year-on-year to RUB 680 billion (US$8.66 billion) because of cheaper oil and a stronger currency.
- In April, Russia earned US$13.2 billion from crude oil and petroleum product exports – the lowest figure in nearly two years.
- In Q1 2025, Russia’s exports dropped to US$94.9 billion, down 6.8% year-on-year.
- Oil revenues remain near a two-year low, despite growing export volumes.
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