Moscow — Russia’s budget proceeds from oil and gas sales fell by around 12% in April compared to the same month last year, the finance ministry said on Wednesday, blaming a sharp drop in the price of oil.
Oil and gas revenues have been the most important source of cash for the Kremlin, accounting for about a third to a half of total federal budget proceeds over the past decade.
According to the finance ministry, revenue reached 1.09 trillion roubles ($13.49 billion) last month, down from 1.23 trillion roubles in April 2024 but marginally up from 1.08 trillion roubles in March.
This was better than 0.96 trillion roubles expected by Reuters.
Revenue declined by 10.3% year-on-year in January-April to 3.73 trillion roubles.
A sustained fall in the oil price far below the level planned in its budget would hamper Russia’s ability to continue to fight in Ukraine, though tax rises or cuts to spending in the short term could help cushion the impact of lower oil prices.
The average Russian oil price in roubles has continued to slide in recent months from 5,079 roubles in March and 4,562 roubles in April per barrel, according to Reuters data.
The finance ministry had initially targeted 10.94 trillion roubles from oil and gas revenue for the budget this year. It revised the expected proceeds down to 8.32 trillion roubles last month amid falling oil prices.
($1 = 80.7955 roubles)
Reporting by Darya Korsunskaya; writing by Felix Light and Vladimir Soldatkin; editing by Guy Faulconbridge and Andrew Osborn – Reuters
