Russia’s oil income jumps in month as price surge boosts budget
Russian oil revenues (Photo: Getty Images)
Russia will receive double revenue from its main oil tax in April – about $9 billion – due to the oil crisis caused by the US and Israeli war against Iran, according to Reuters.
Price jump and tax revenues
After the US and Israel struck Iran at the end of February, Tehran effectively closed the Strait of Hormuz – a route through which about 20% of the world's oil and LNG passes. This caused oil prices to surge: Brent futures exceeded $100 per barrel.
According to Reuters calculations, Russia's mineral extraction tax (MET) for the oil sector will rise in April to approximately 700 billion rubles (about $9 billion), compared to 327 billion rubles in March. This is also 10% higher than in April last year.
The average price of Russian Urals oil, used for taxation, jumped in March to $77 per barrel – the highest level since October 2023 and 73% above February ($44.59). This significantly exceeds the $59 per barrel price projected in Russia's 2026 budget.
Limitations for Russia
Despite this, Russia's economy remains vulnerable. In the first quarter of 2026, the Russian budget recorded a deficit of 4.58 trillion rubles (1.9% of GDP). Furthermore, Ukrainian attacks on Russia's oil infrastructure are reducing revenues and threatening to cut production.
The Kremlin stated that amid the global energy crisis, there is a huge number of requests for Russian energy from various countries.
In February, the Kremlin's revenues from oil exports fell to their lowest level since the start of the full-scale war.
At the same time, on March 13, the US temporarily eased sanctions on Russian oil and petroleum products.
According to a diplomatic source, this is unlikely to stabilize global markets but could allow Moscow to finance combat operations for longer.
President Volodymyr Zelenskyy shares this view, warning that Russia could gain up to $10 billion to continue the war.
