“Russia’s oil and gas revenues in June fell to a 2-year lowRussia’s oil and gas revenues in June decreased by 33.7% compared to last year, reaching their lowest level since January 2023.
The fall in global crude oil prices and the strengthening of the ruble are reducing the profitability of oil companies and
burdening the federal budget.
”, — write: unn.ua
UNN reports with reference to Bloomberg.
DetailsThe fall in crude oil prices and a strong ruble cut Russia’s oil revenues to a 2-year low.
Compared to last year, Russia’s total oil and gas tax revenues decreased by a third. According to Bloomberg, this is almost 495 billion rubles. This level of revenue is the lowest indicator for Russia since January 2023.
The ministry calculated Russia’s June oil revenues based on the Urals price in May of $52.08 per barrel. This is the lowest price for the country’s key export grade since March 2023
On the other hand, the ruble has strengthened. But the strengthening of the ruble reduces export incentives. It also undermines the profitability of oil companies, the author of the material points out:
- the federal budget, which depends on oil and gas taxes for approximately one-third of its revenues, is significantly burdened.
A stronger currency means that Russia and its oil producers receive fewer rubles for each barrel they pump and sell. This undermines the profitability of companies and burdens the federal budget, which depends on oil and gas taxes for approximately one-third of its revenues.
At the same time, Russia’s national treasury has been burdened for quite a long time and significantly by multi-billion dollar expenditures on Russia’s war in Ukraine.
RecallEarlier, UNN reported that, according to Ukrainian Foreign Minister Andriy Sybiha during the press conference “Fair Play: How to Make Sanctions Work”, Russia continues to receive significant revenues from the sale of oil, gas, and energy resources. The aggressor country earned about $13 billion in April alone.