Russia's oil and gas revenues fell by more than a quarter last month amid falling oil prices and restrictions on gas supplies to Europe.
This is reported by Bloomberg.
Revenues to the budget from oil and gas taxes in June decreased by 26% compared to last year and amounted to almost 529 billion rubles ($5.84 billion). Gas taxes fell by 54% to 125.7 billion rubles, while revenues from oil and petroleum products, which account for more than 76% of revenue from the sale of hydrocarbons, according to Bloomberg estimates, fell by almost one-tenth to 402.8 billion rubles.
Moscow's income from the sale of oil and gas fell by more than a quarter.
Russia's war against Ukraine is weighing heavily on Russian coffers amid rising spending to finance the Kremlin's military aggression, while the country's economy is under Western sanctions. Taxes from the oil and gas industry remain a key source of revenue, although they currently account for less than a third of Russian budget revenues.
Earlier this year, Russia changed the way it assesses oil prices for tax purposes to boost budget revenues after G7 countries imposed price caps on their oil sales and the European Union banned most imports of oil and petroleum products by sea.
The Ministry of Finance introduced a discount to the global Brent standard, which sets the minimum price for oil in the country for budget purposes. If Russian oil trades above the threshold, the ministry uses the prevailing market price to calculate taxes. In June, Russia's main export blend Urals averaged $55.28 per barrel, $8.6 higher than the price calculated using the discount mechanism.
The fall of the ruble
On June 5, the Russian ruble continues to fall against the major world currencies. At the same time, the euro reached the level of 99 rubles per euro, and the dollar rose to 90.8 rubles. Both currencies reached maximum values since March 28-29 last year.
It will be recalled that the revenues of the Russian budget were sharply reduced due to Western sanctions. According to the IEA, in April, tax revenues from the oil and gas sector decreased by 64% year-on-year.
