Russia’s oil revenues fell by 29% year-on-year in October, primarily due to lower oil prices and government subsidies for domestic refiners, according to Bloomberg’s analysis of official government data released Tuesday.
In October, global oil prices, including the price of Russia’s main crude, Urals, dropped compared to the same period in 2023. The average price of Urals was $63.57 per barrel, down from $83.18 per barrel last year. This decline in crude prices significantly impacted Russia’s oil revenues.
Additionally, government subsidies to local refiners contributed to the revenue decrease. These “damper payments” were introduced in October to encourage domestic refiners to sell their products within Russia rather than exporting them at higher prices. Russia did not provide these payments in October 2023.
As a result, Russia’s oil revenue for the month totaled $10.8 billion (1.05 trillion rubles), a 29% drop from the previous year.
However, month-on-month, oil revenues rose by over 75%. This spike was largely due to the quarterly oil tax payment, which is made in October as part of a profit-based tax paid by companies four times a year.
Oil and gas revenues remain a vital source of income for Russia’s federal budget. In response to price volatility, Russia has signaled plans to reduce its dependence on oil. Finance Minister Anton Siluanov noted that oil and gas revenues, which once made up 35-40% of Russia’s budget, are expected to account for 27% in 2025 and 23% by 2027.
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