Russia’s federal budget revenue from oil and gas fell by 36% in the month of May, compared with the same month last year. The revenue was down 12% compared with April.
The figures were announced by the Russian Finance Ministry on Monday. The ministry attributed the figures to a lower profit-based oil tax.
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Russia is already contending with a high budget shortfall amid the ongoing war against Ukraine. The government recorded a 3.4tn-rouble ($42bn) deficit in the first four months of the year, Reuters reports, with spending rising and energy revenue falling.
Budget income from oil and gas sales reached 570.7bn roubles in May, down from 886bn in May 2022 and 647.5bn in April 2023.
Proceeds from Russia’s profit-based oil tax also fell by 5.4bn roubles to 180bn in May, compared with 185.4bn roubles in April.
Last month Russian Finance Minister Anton Siluanov acknowledged issues with oil and gas revenue during a video conference with Vladimir Putin. Revenue fell by more than 50% in the first quarter of 2023.
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By GlobalData“Russia’s non-energy revenues are on track for growth as planned, with the potential for a small surplus by year-end, but there is a problem with energy revenues,” he said.
The announcement came on the same day that Russia marked its Ecologist Day, in line with the UN’s World Environment Day.
“Clean air, water, the preservation of animals and plants, the implementation of measures related to counteracting climate change – all these steps are necessary for the improvement of the quality of life of our people,” said Russia’s Prime Minister Mikhail Mishustin.
Mishustin did not mention the country’s fossil fuel output in his words to mark the occasion. Russia has an estimated 6.9 million barrels per day of refining capacity, according to the International Energy Agency. In 2021, Russia exported an estimated 4.7 million barrels per day of crude.
Russia has continued exporting oil to allied countries, despite ongoing sanctions from those aligned with Ukraine.
