Russia's Oil and Gas Revenue: A Deepening Crisis

In May, Russia experienced a 35% drop in oil and gas revenue, with figures falling to 512.7 billion roubles, according to data from the finance ministry. This decline is attributed to weaker oil prices and international sanctions impacting the nation's economic stability.

The budget deficit has deepened, with sources revealing Russia's resistance to recent production hikes by OPEC+, a consortium of oil-exporting countries and their allies. Oil and gas have historically contributed significantly to Russia's federal budget, but revenues have dwindled alarmingly.

Predicting the continuation of low oil prices, the finance ministry has revised the 2025 budget deficit forecast from 0.5% to 1.7% of GDP. This fiscal forecast reflects a 24% reduction in energy revenue expectations, mirroring profound challenges in bolstering economic resilience amidst global market dynamics.

(With inputs from agencies.)