Kremlin oil revenues nearly halve as funds run out rapidly
Photo: The Kremlin's oil and gas revenues have fallen by nearly half (Getty Images)
Russia’s oil and gas revenues in the first quarter of 2026 fell by nearly half compared to the same period last year, and the budget deficit has already exceeded the annual target, according to The Bell.
This is evidenced by a preliminary assessment of federal budget execution released by the Russian Ministry of Finance. In particular, oil and gas revenues fell by 45.4% to 1.44 trillion rubles, mainly due to falling oil prices.
Total budget revenues fell by 8.2% to 8.31 trillion rubles, while expenditures, conversely, rose by 17% to 12.89 trillion rubles.
As a result, for January–March 2026, the federal budget posted a deficit of 4.58 trillion rubles, which is 2.62 trillion more than during the same period last year. The Ministry of Finance attributes the significant deficit at the start of the year to alleged front-loading of expenditures.
At the same time, the current deficit has already exceeded the annual target of 3.79 trillion rubles. It will not be easy to cover this gap through fluctuations in oil prices, so the Russian government will likely have to borrow more actively and, possibly, revise its budget policy or resort to spending cuts.
Background
In February, the Kremlin’s oil export revenues fell to their lowest level since the start of the full-scale invasion of Ukraine.
Meanwhile, on March 13, it was reported that the US had temporarily eased sanctions against Russian oil and petroleum products. According to a diplomatic source, such a move is unlikely to stabilize global markets, but it could allow the Kremlin to finance the war for longer.
A similar position was expressed by Ukrainian President Volodymyr Zelenskyy, who stated that Russia could receive up to $10 billion to continue hostilities.
