Russia’s oil revenues fell by 21% in November compared to the same month last year, as global oil prices and the cost of its main crude export, Urals, dropped. This decline is linked to growing concerns about global oil demand.
For the second consecutive month, Russia’s oil revenue showed a significant decrease, according to Bloomberg’s estimates, which were based on official government data released Wednesday.
The Russian government used an average Urals price of $64.72 per barrel to calculate taxes for November, much lower than the $81.69 per barrel price used a year earlier. As a result, Russia’s government collected $5.8 billion (605.2 billion rubles) in oil-related taxes last month, a 21% drop from November 2023.
Overall, Russia’s oil and gas revenues also dropped by nearly 17% from the previous year, totaling $7.7 billion (801.7 billion rubles), based on Bloomberg’s calculations from Russian finance ministry data.
In October, Russian oil revenues had already taken a hit, with a 29% year-on-year decline. This was partly due to lower oil prices and government subsidies to domestic refiners. The government paid these subsidies, known as “damper payments,” to encourage refiners to sell their products within Russia instead of exporting them at higher prices. Last October, no such subsidies were paid.
A further drop in oil prices poses a significant risk to Russia’s economy and financial stability, according to the latest review from Russia’s central bank. The report warns that a decline in global commodity prices, especially oil, could worsen Russia’s economic situation if the global economy continues to slow down.
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