Russia's oil and gas budget revenues seen down 40% in Nov. m/m

Proceeds from oil and gas sales for Russia's federal budget are likely to be almost 40% lower this month than in October due to cyclical payments of profit-based tax and the restoration of subsidies for refineries, Reuters calculations showed.

The proceeds could total some 1 trillion roubles ($11.15 B) in November, down from 1.63 trillion roubles last month, but up from 0.87 trillion roubles in October 2022.

The finance ministry is expected to disclose the November budget proceeds in early December.

Russia's energy revenues have been squeezed by Western sanctions, such as price caps and an embargo on seaborne oil exports, and by the closure of the Nord Stream gas pipelines to Europe, which were blown up in September 2022. Investigators have yet to establish who was responsible for the blasts.

Reuters' calculations are based on data from industry sources and official statistics on oil and gas production, refining and supplies on domestic and international markets.

Proceeds from oil and gas sales are crucial for Russia's commodity-oriented economy and for the financing of what Moscow calls its special military operation in Ukraine.

Still, their share in the budget has been declining, accounting for 41.6% of total budget revenue in the whole 2022, while in January-September of this year, oil and gas sales accounted for 28.3% of total proceeds of 19.73 trillion roubles.

Russia's oil and gas revenues in October more than doubled to 1.635 trillion roubles from 739.9 billion roubles in September thanks to profit-based tax payments totalling 0.59 trillion roubles.

November proceeds will also decline thanks to the reinstatement of damper payments to refineries totalling some 125 billion roubles to compensate for selling the fuel on the domestic market instead of as more lucrative exports.

Related News


{{ error }}
{{ comment.comment.Name }} • {{ comment.timeAgo }}
{{ comment.comment.Text }}