Russia’s Oil and Gas Revenues Surged by 73.5% in January-May

Russia’s budget revenues from oil and gas soared by 73.5% in January-May of 2024 compared to the first five months of 2023, according to data from Russia’s finance ministry released on Monday.

Between January and May 2024, the revenues for the Russian federal budget from oil and gas hit $55.7 billion (4.95 trillion Russian rubles), per the data reported by Russian news agency TASS.

“In line with parameters of the socioeconomic outlook, a steady surplus of oil and gas revenues above their base level is also expected in months to come,” TASS quoted a statement from the ministry as saying.

Non-oil and gas revenues also rose, by 34% in January-May 2024 compared to the same period last year.  

Russian oil revenues have been rising in recent months compared to the year-ago levels as Moscow is increasingly finding ways to circumvent sanctions and find buyers willing to risk purchasing its crude and refined petroleum products.

In April 2024, for example, Russia’s oil and gas revenues hit $13.5 billion (1.23 trillion Russian rubles), Russian finance ministry data showed in early May. The Kremlin received nearly double the oil income for the budget than it did in the same month of 2023.

The weaker Russian ruble and the higher price of Russia’s flagship Urals crude amid higher international oil prices contributed to higher revenues from oil-related taxes and from all total oil and gas sales, according to estimates by Bloomberg.  

The doubled revenues from oil for Russia highlight the difficulties of the Western countries to reduce Putin’s income from oil, despite the price cap on Russia’s oil and the ramp-up of the sanctions enforcement in recent months.

Then in May 2024, Russia’s oil proceeds increased by almost 50% from a year ago, as Moscow continues to manage to circumvent sanctions and get a higher price for its crude.

By Charles Kennedy for Oilprice.com

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