Oil sales revenues to the Russian state budget in July decreased by a third compared to the same period last year after a fall in world oil prices and a rise in the national currency, Bloomberg reports, writes UNN.
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According to Bloomberg's calculations, based on data from the Russian Ministry of Finance published on Tuesday, oil-related taxes in the country decreased by almost 33% to 710.4 billion rubles ($8.9 billion) last month.
The reduction in revenues from these sectors, which account for approximately one-third of the Russian budget, will increase pressure on state finances, which are already burdened by huge military spending in Ukraine, the publication writes.
As the war waged by the Kremlin enters its fourth year, the Russian oil industry, it is noted, remains a key target for Western sanctions aimed at limiting the flow of petrodollars into the national treasury. Donald Trump has threatened to impose penalties on Russian energy consumers.
According to Bloomberg's calculations, oil revenues increased by almost 71% month-on-month. This growth is due to the fact that one of Russia's main oil taxes - the profit tax - is paid four times a year: in March, April, July, and October, the publication notes.
The ministry calculated Russia's oil sales revenues in July based on an average Urals oil price of $59.84 per barrel in June. Although this is the first month-on-month increase for the country's key export blend in five months (when world oil prices sharply rose due to hostilities in the Middle East), Urals oil prices fell by 14% compared to last year, according to Bloomberg data.
Benchmark prices fell year-on-year, as Trump's trade policies threaten to slow global economic growth, while OPEC+ increases production faster than expected, the publication writes.
The strengthening of the Russian national currency, it is noted, also contributed to the decline in revenues, as due to the strengthening of the national currency, oil companies receive fewer rubles for each barrel produced and sold. In June, the Russian currency traded at an average of 78.7183 rubles per US dollar, the highest in more than two years, driven by interest rates remaining near record levels.
As a result, according to Bloomberg's calculations, oil-producing countries received 4711 rubles for each barrel sold, compared to 6127 rubles a year earlier.
Nevertheless, the decline in world prices for oil and petroleum products, as indicated, helped the Russian government reduce subsidies paid to Russian refineries to partially compensate for the difference in fuel prices domestically and abroad. This measure is aimed at increasing the supply of gasoline and diesel fuel to the domestic market. In July, the budget transferred 59.9 billion rubles in subsidies, which is 58% less than a year earlier.