MOSCOW, April 9 (Reuters) - Russia will see revenue from its biggest single oil tax double to $9 billion in April due to the oil and gas crisis triggered by the U.S. and Israeli attack on Iran,
Iran War Drives Russian Oil Revenue to $9 Billion, Reuters Reports
Impact of Iran Crisis on Russian Oil Revenue
MOSCOW, April 9 (Reuters) - Russia will see revenue from its biggest single oil tax double to $9 billion in April due to the oil and gas crisis triggered by the U.S. and Israeli attack on Iran, Reuters calculations showed on Thursday.
The Reuters calculation is some of the first concrete evidence of a windfall for Russia, the world's second-largest oil exporter, from the Iran war, which oil traders say has triggered the most serious energy crisis in recent history.
Strait of Hormuz Closure and Oil Price Surge
Iran effectively shut the Strait of Hormuz - a route for about a fifth of global oil and LNG flows - after U.S. and Israeli airstrikes on Iran at the end of February, sending Brent futures shooting well past $100 per barrel.
Russian Oil Taxation and Revenue Growth
Russia's main revenue from its vast oil and gas industry is based on production. Export duty on crude oil has been nullified from the start of 2024 as part of the so-called wider tax manoeuvre, a years-long tax reform of the industry.
Mineral Extraction Tax Increase
According to Reuters calculations based on preliminary production data and oil prices, Russia's mineral extraction tax on oil output will increase in April to around 700 billion roubles ($9 billion) from 327 billion roubles in March. The revenue is up by some 10% from April last year.
Budget Projections for 2026
For the whole of 2026, Russia has budgeted for 7.9 trillion roubles from the mineral extraction tax.
Russian Energy in Demand
RUSSIAN ENERGY IN DEMAND
Urals Crude Price Surge
The average price of Russia's Urals crude, used for taxation, jumped to $77 per barrel in March, its highest since October 2023, according to economy ministry data.
That was up 73% from February's $44.59 per barrel and above the level of $59 assumed in this year's state budget.
Kremlin's Response to Energy Crisis
The Kremlin said on Tuesday there were a huge number of requests for Russian energy from a range of different places amid a grave global energy crisis that was shaking the foundations of the oil and gas markets.
Risks and Limitations to Russia's Windfall
Economic Warnings for 2026
Still, there are limits on the windfall for Russia, and economists inside Russia have repeatedly cautioned that 2026 could be a tough year.
Budget Deficit Concerns
Russia ran a budget deficit of 4.58 trillion roubles, or 1.9% of gross domestic product, in January-March 2026, the finance ministry said on Wednesday.
Impact of Ukraine's Attacks
And Ukraine's attacks on Russian energy infrastructure, with an aim to cripple Moscow's finances, have also contributed to lower earnings and threaten oil production cuts.
Uncertainty Over Duration of Crisis
The size of the windfall for Russia will ultimately depend on how long the Iran crisis lasts.
Additional Information
($1 = 78.3000 roubles)
(Reporting by Reuters; editing by Guy Faulconbridge and Keith Weir)
