According to Reuters calculations, in July 2025, the aggressor country Russia's oil and gas revenues will fall by about 37% compared to the same month in 2024 to 680 billion rubles ($8.66 billion). The key reasons are cheaper oil and a stronger ruble.
Points of attention
- British journalists highlight the significance of oil and gas revenues for Russia, constituting 25% of federal budget revenues and emphasizing the severity of the revenue decrease.
- The decrease in oil and gas revenues underscores the financial strain Russia faces amidst increased defense and security spending following the invasion of Ukraine.
Russia will have less money to finance the war
Reuters concluded that the average price of Russian oil, calculated in rubles, remained below the federal budget target for 2025.
In addition, it is predicted that the Kremlin's earnings from the sale of oil and gas for January-July 2025 could decrease by 20% compared to the same period last year to 5.4 trillion rubles.
The Russian Finance Ministry had initially planned to receive 10.94 trillion rubles from oil and gas sales this year, but due to falling oil prices, it revised that forecast down to 8.32 trillion rubles. Last year, revenues from oil and gas sales reached 11.13 trillion rubles.
British journalists point out that revenues from the sale of oil and gas are the most important source of cash for Russia.
Moreover, they account for 25% of all federal budget revenues.
The decline in revenues is very painful for Russia, which has significantly increased defense and security spending since its full-scale invasion of Ukraine.
