Oil revenues to the Russian state budget in September decreased by a fifth compared to the same period last year amid falling world oil prices and strengthening of the national currency, Bloomberg reports, writes UNN.
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"The decline in revenues from the oil industry, which together with gas accounted for a quarter of Russia's budget this year, is weighing on the state treasury, as Moscow continues to spend heavily on financing the war in Ukraine, which is now in its fourth year. The government already expects oil and gas revenues to the budget this year to be the lowest since the 2020 pandemic," the publication writes.
According to Bloomberg's calculations, based on data from the Russian Ministry of Finance published on Friday, oil-related taxes received decreased by almost 20% to 483.5 billion rubles (5.9 billion US dollars) last month. Total oil and gas revenues fell by 25% to 582.5 billion rubles.
The decline in revenue followed a drop in oil prices amid fears of an impending oversupply in the global market. OPEC+, of which Russia is a leading member, accelerated the restoration of production, raising fears that supply will exceed demand next year. Meanwhile, US President Donald Trump called on buyers to stop purchasing fossil fuels from Moscow, which would harm the Kremlin's budget, the publication writes.
The Russian Ministry of Finance calculated oil revenues for September based on an average Urals oil price of $57.55 per barrel in August. This is more than 18% lower than a year earlier and compares to a nearly 15% drop in benchmark Brent over the same period.
The strengthening of the ruble also contributed to the decline in revenue. The strengthening of the Russian currency means that companies receive fewer rubles for each dollar earned from selling a barrel of oil. Last August, the average exchange rate of the Russian currency was 80.1582 rubles against the US dollar, which is 10% higher than a year earlier.
On a monthly basis, oil revenues increased by 15%, as state subsidies to oil refineries, which partially compensate for the difference in fuel prices domestically and abroad, decreased amid rising prices in Russia. Last month, the budget allocated 30.5 billion rubles for the supply of automotive fuel to the domestic market, which is the minimum figure since October 2023, when payments were zero, the publication indicates.
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