Oil and gas revenues of the Russian budget fell by 47%
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Oil and gas revenues of the Russian budget for January-June decreased by 47%, to 3.38 trillion rubles, the Ministry of Finance reports.
Total budget revenues for the first half of 2023 amounted to 12.38 trillion rubles. This is 12% lower than in the same period last year. Compared to last year, budget expenditures increased by 19% to 14.9 trillion rubles.
The budget deficit in the first half of the year reached 2.59 trillion rubles. Over the last month, it decreased by 816 billion rubles. Of these, more than 500 billion rubles were allocated from the National Welfare Fund.
As noted by the Ministry of Finance, the drop in oil and gas revenues is associated with a drop in price quotes for Urals oil and a reduction in gas exports, as well as an increased level of oil and gas revenues in 2022.
The Ministry of Economy previously predicted that oil and gas exports will decrease by 6.7% in real terms in 2023, and will grow only by an average of 2.9% over the next three years due to reorientation to the market of “friendly countries”.
- European Union countries introduced a price ceiling for Russian oil at the beginning of December 2022 due to the invasion of Ukraine. Two weeks later, they also introduced a price ceiling for gas supplies. The maximum oil price will be 60 dollars per barrel. In the first week of the effect of the price ceiling and the ban on the delivery of Russian oil by sea, exports from Russia decreased by 54%. Limiting the price of Russian oil became part of the next package of sanctions in response to Russia’s invasion of Ukraine. In addition, Russia lost part of the European pipeline gas market due to the suspension of the Yamal-Europe and Nord Stream-1 projects.
- Russian President Vladimir Putin responded by banning the supply of Russian oil and petroleum products to countries that use the price ceiling.
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