MOSCOW (Reuters) -Russian state oil and gas revenue may fall in November by around 35% from the corresponding month in 2024 to 520 billion roubles ($6.59 billion) due to cheaper oil and a stronger
Russia's Oil and Gas Revenue Expected to Decline by 35% in November
MOSCOW (Reuters) -Russian state oil and gas revenue may fall in November by around 35% from the corresponding month in 2024 to 520 billion roubles ($6.59 billion) due to cheaper oil and a stronger local currency, Reuters calculations showed on Monday.
Oil and gas revenue has been the most important source of cash for the Kremlin, making up a quarter of total federal budget proceeds.
The revenue is also set to decline by 7.4% from October, excluding cyclical payments of the profit-based tax.
The decline in proceeds is painful for Russia, which has heavily boosted defence and security spending since launching its military campaign in Ukraine, which it calls a special military operation, in February 2022.
For the first 11 months of the year, the revenue is seen falling by 22% to 8 trillion roubles, on track to reach the 2025 target.
According to Reuters calculations, the price of the Russian oil for tax purposes declined in the period from January to November, to stand at $57.3 per barrel from $68.3 in the 2024 period.
At the same time, the rouble has strengthened to 81.1 per dollar from 91.7 in the period from January to November 2024.
The finance ministry will publish its estimates on December 3.
The ministry had initially planned to earn 10.94 trillion roubles from oil and gas sales this year, but falling oil prices led it to revise down that expectation last month, to 8.65 trillion roubles.
Oil and gas revenue reached 11.13 trillion roubles last year.
($1=78.9500 roubles)
(Reporting by Reuters; Editing by Clarence Fernandez)
