Russia could lose $700m in oil revenue in May

According to calculations, oil and gas revenues could amount to 593 billion rubles, compared to 648 billion in April and 886 billion in May 2022.

Falling oil revenues – a major source of income for the budget – are likely to add to an already large budget deficit. Russia posted a deficit of 3.4 trillion rubles ($44 billion) in the first four months of the year as spending soared, notably on the back of the war in Ukraine and falling revenues energy.

Russian oil and gas are subject to Western sanctions that limit sales to Western countries and also seek to impose a global price cap on Russian oil.

Finance Minister Anton Siluanov said Wednesday that Russian oil and gas revenues were below expectations.

Profits tax could fall to zero this month, as taxpayers are allowed to pay it about once a quarter, usually not in May.

According to the Ministry of Finance, the contribution of tax payments to the budget amounted to 221 billion rubles in March and 185 billion in April.

At the same time, revenue from the mining tax on oil could increase this month by 128 billion rubles from its level in April thanks to an increase in the price of Russian oil mixture from the Urals. and the weakening of the rouble.

Earlier today, the US Treasury Department said in a report, citing figures from the Russian Ministry of Finance, that Russian oil revenues have fallen significantly since Western countries set a ceiling on Russian crude prices in the framework of sanctions since the war in Ukraine.

The Treasury Department says the $60-a-barrel cap imposed by the G7, European Union and Australia has caused oil revenues to fall from 35% of Russia’s total budget before the war to 23% this year. .

She added that federal government oil revenues fell more than 40% between January and March this year compared to the previous year.

The decline in revenue comes despite an increase in total Russian oil exports to countries like India over the past year.

The report will bring good news for the G7 leaders meeting in Japan. They are expected to discuss new sanctions against Russia over the war in Ukraine and how to better implement existing ones.

Read the Latest World News Today on The Eastern Herald.


Source: The Eastern Herald

Be the first to comment

Leave a Reply

Your email address will not be published.