In June, Russia's budget revenues from oil and gas fell by a third on an annual basis

The Finance Ministry reported on Thursday that Russia's oil-and-gas revenue in June fell 33.7% compared to the same period last year, falling to 494.8 billion Russian roubles (6.29 billion dollars), its lowest level since January 2023. This was due to weak oil prices, and a stronger rouble.

The Kremlin's main source of income is oil and gas revenues, which account for roughly a quarter the total federal budget revenue.

Revenues fell 3.5% in May, despite a drop of a third on an annual basis.

The revenue for the first half of this year fell by nearly 17% compared to the same period last year. It was 4.73 trillion rubles.

The decline is painful for Russia. It has increased its defence and security expenditures since February 2022, when it launched its military campaign against Ukraine.

In 2025, Russia increased its state expenditures on national defense by a quarter to 6,3% of GDP. This is the highest level seen since the Cold War. The total federal budget spending in 2025 will be 32% defence expenditure.

Due to the falling oil price, the finance ministry revised its expectation to 8,32 trillion roubles.

The oil and gas revenues reached 11,13 trillion roubles in 2013.

(source: Reuters)