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Russian Oil and Gas Revenues Surge in June – Reuters

Tatneft oil pumps in the republic of Tatarstan. Yegor Aleyev / TASS

Russia’s revenue from oil and gas sales this month is expected to reach 812 billion rubles ($9.4 billion), Reuters reported Tuesday, a reflection of how Moscow has managed to weather the storm of Western sanctions imposed after its full-scale invasion of Ukraine.

The projection, based on Reuters’ own calculations, would mark a more than 50% year-on-year increase — up from 529 billion rubles in June 2023. It would also represent an increase of around 18 billion rubles compared earnings in May.

Russia’s annual oil and gas revenues fell to 8.8 trillion rubles last year as it cut output and exports — part of an OPEC+ price stabilizing move — and was hit by a G7 price cap on oil products. 

Moscow has since been able to reroute supplies from Europe to India and China amid ballooning wartime spending on defense and security that has led to two consecutive annual budget deficits.

Authorities in Russia expect this year’s revenues from oil and gas sales to increase by 21% compared to 2023 — reaching 10.7 trillion rubles total, according to Reuters.

This month’s revenue spike will come as budget subsidies to refineries will decline by some 60 billion rubles from May, Reuters reported. These subsidies included payments — called a “damper” — that encourage refineries to sell domestically at cheaper prices instead of exporting products.

Russia’s Finance Ministry is expected to publish budget data for June on July 3.

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