Russia’s Oil and Gas Revenues Fall to Five-Year Low
Russia’s revenues from the oil and gas sector dropped sharply in 2025 to their lowest level in five years, hit by lower crude prices, declining gas exports and Western sanctions.
The Finance Ministry said the budget received 8.48 trillion rubles, or about $108 billion, from sector taxes, a 24 percent decline from 2024.
Moscow relies heavily on these revenues to finance spending, but a combination of falling global prices, a stronger ruble and energy sanctions reduced financial inflows at a time of sharply rising military expenditure.
To cover the gap, the government depleted more than half of its National Wealth Fund and resorted to costly borrowing.
Oil revenues fell 22 percent to 7.13 trillion rubles as discounts on Urals crude widened due to restrictions, with the average price at $57.65 per barrel in 2025.
Gas revenues dropped more than 30 percent to 1.35 trillion rubles, the lowest since 2020, after Russia lost most European markets and transit via Ukraine stopped in early 2025, while increased exports to China have not compensated for the decline.
The Finance Ministry said the budget received 8.48 trillion rubles, or about $108 billion, from sector taxes, a 24 percent decline from 2024.
Moscow relies heavily on these revenues to finance spending, but a combination of falling global prices, a stronger ruble and energy sanctions reduced financial inflows at a time of sharply rising military expenditure.
To cover the gap, the government depleted more than half of its National Wealth Fund and resorted to costly borrowing.
Oil revenues fell 22 percent to 7.13 trillion rubles as discounts on Urals crude widened due to restrictions, with the average price at $57.65 per barrel in 2025.
Gas revenues dropped more than 30 percent to 1.35 trillion rubles, the lowest since 2020, after Russia lost most European markets and transit via Ukraine stopped in early 2025, while increased exports to China have not compensated for the decline.
