Russia’s Oil and Gas Revenues Are Set to Plunge 46% in January

Russia’s fund revenues from lipid and state are acceptable to driblet by 46% connected the twelvemonth this month, according to Reuters calculations, which the work based connected lipid and state accumulation figures, refining rates, and income connected some the home and planetary markets.

According to these, Russia’s revenues from lipid and state for January volition beryllium 420 cardinal rubles, which is adjacent to astir $5.42 billion, driven by little planetary lipid prices and a stronger section currency. The ruble gained implicit 30% successful December 2025 from a twelvemonth ago, driving the ruble-denominated terms for lipid utilized for taxation purposes little by arsenic overmuch arsenic 53%.

Russia’s lipid and state manufacture contributes astir 25% of its full fund revenues. Western leaders see this a ample capable information to people with sanctions successful bid to presumably wounded its quality to money the warfare successful Ukraine. So far, 19 packages of EU sanctions and respective rounds of U.S. sanctions person failed to marque immoderate quality successful Russia’s subject plans, and the EU itself adjacent continues buying Russian lipid (via 3rd countries) and gas, connected which it has imposed sanctions.

Reuters noted successful its study that Russia’s national fund volition person the approximate equivalent of $120 cardinal successful revenues—8.96 trillion rubles—from the lipid and state manufacture this year, based connected existent terms assumptions, of course. This volition beryllium up from 8.48 trillion rubles for past year, oregon astir $110 billion. The fig represented a 24% diminution from the erstwhile year.

There has been a further diminution since then, mostly due to the fact that of the November U.S. sanctions, which specifically targeted the 2 largest exporters of crude lipid successful Russia and their buyers. As a result, Rosneft and Lukoil clients successful India person switched to different vigor trading companies and different countries arsenic well. However, the driblet successful flows to India has been obscurity arsenic pronounced arsenic expected, astatine implicit 1 cardinal barrels regular for December versus expectations for 800,000 barrels daily, per Bloomberg.

By Irina Slav for Oilprice.com

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