Deputy Prime Minister Alexander Novak said that quotas may be introduced. Credit: Maksim Konstantinov via Shutterstock.

Russian oil and gas revenue dropped by 47% between January and June compared with the same period last year. Finance Ministry data published on Wednesday showed that revenue fell to Rbs3.38trn ($37.4bn) in the first half of 2023. 

In June alone, oil and gas revenues declined by 26.4% to Rbs529bn compared with the year prior, amid falling oil prices and reduced gas flow to Europe. 

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

On Monday, Deputy Prime Minister Alexander Novak announced voluntary production cuts of 500,000 barrels per day as Russia seeks to raise oil prices. 

Taxes from the oil and gas industry are a key source of revenue for the Russian Government, including the financing of continued military activity in Ukraine.  

Earlier this year, Russia altered the way in which it calculates tax. The tax on oil extraction is now based on the price of Russia’s Urals blend. If oil trades above a certain threshold, then the prevailing market tax is used to calculate extraction tax. President Vladimir Putin’s government hopes that the measures will result in higher revenue. A number of Ukrainian allies have announced sanctions on Russian oil and gas in an attempt to limit government revenue. 

In June, natural gas revenues fell 54% to Rbs125.7bn. Proceeds from crude and petroleum products, which account for more than 76% of hydrocarbon revenue, also declined by almost a tenth to Rbs402.8bn. 

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Reduced export of natural gas to Europe has been the most significant blow to Russia’s revenue. Prior to the invasion of Ukraine, Europe was the largest market for Russian gas giant Gazprom. 

In the month of May, Russian oil and gas revenue fell by 36% compared with the previous year. Russian Finance Minister Anton Siluanov has acknowledged the problem of falling oil and gas revenue.  

“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 during a video conference in May.