Russia’s oil revenues fell by a third in July, Bloomberg reports
Illustrative photo: Russia’s oil revenues have declined (Getty Images)
In July, Russia’s oil revenues dropped by a third compared to last year. This happened due to a decline in global crude oil prices, Bloomberg informs.
Oil tax revenues in Russia fell by nearly 33% in July, dropping to 710.4 billion rubles (about $8.9 billion). Overall, oil and gas revenues totaled 787.3 billion rubles, which is 27% less than a year ago. These sectors account for about one-third of all budget revenues, and the decline increases pressure on public finances, especially amid massive war-related spending.
Against the backdrop of Western sanctions and the threat of new US restrictions, Russia’s oil industry continues to lose profits. The European Union is lowering the price cap on Russian oil, while US President Donald Trump is threatening sanctions against countries that purchase Russian energy resources.
At the same time, according to Bloomberg's calculations, oil revenues in July rose by 71% compared to June. This is due to the fact that one of the main taxes is paid quarterly. The oil revenues were calculated based on the June price of Urals crude — $59.84 per barrel. Despite the increase, this is still 14% lower than a year ago.
Revenues also fell due to the strengthening of the ruble: in June, the average exchange rate was 78.7 rubles per dollar — the highest in two years. As a result, oil producers received 4,711 rubles (about $58) per barrel, compared to 6,127 rubles (about $76) a year ago.
Oil prices and ending the war
Earlier, US President Donald Trump stated that if global oil prices drop, it would force Russian President Vladimir Putin to stop the killings in the war against Ukraine.
According to him, oil prices need to be reduced by another $10 per barrel.
