Data shows that Russia's oil-and-gas revenue rose 32% year/year to $9.26 Billion in May.

The Finance Ministry reported on Wednesday that the oil price rally in the Middle East fueled a 32.4% increase in Russia's tax revenues from oil and gas.

The revenue fell by 20.7% in April, when the budget received additional payments for profit-based taxes, which are paid on a cyclical basis. Russia is the third largest oil exporter and producer in the world after the U.S.

The Kremlin's main source of revenue is oil and gas. However, its finances are being strained by the heavy expenditure on defence and security since Russia started its military campaign against Ukraine in February 2022.

In the first five months of the year, revenue?totalled nearly 3 trillion roubles, a drop of around 30% compared to the same period in 2020.

The Russian budget for 2026?predicts oil and gas revenues of 8.92 trillion?roubles. The total budget revenue for this year is estimated at 40.283 trillion Russian roubles.

The federal budget oil and gas revenue dropped by 24% last year to 8.48 trillion roubles. This is the lowest level seen since 2020.

(source: Reuters)