Russia's oil and gas budget revenue plummets 24% to its lowest point since 2020, according to Finance Ministry data. This significant drop is primarily attributed to a 18% decline in oil prices and the rouble's appreciation. Oil and gas revenues constitute approximately 25% of the federal budget, a critical source of income that has been significantly impacted by heavy defense spending since Russia's military campaign in Ukraine began in February 2022. Last year's revenues fell short of the revised forecast of 8.65 trillion roubles, reaching only 8.48 trillion roubles. This marks a stark contrast to the previous year's revenue of 11.13 trillion roubles. The oil market's oversupply concerns have led to a 18% yearly drop in oil prices, the steepest since 2020. The financial impact is further exacerbated by the rouble's appreciation, which has contributed to the overall revenue decline. This situation has raised concerns about Russia's economic stability, especially given the heavy reliance on oil and gas revenues. Ukraine and its Western allies have repeatedly expressed their intention to reduce Russian oil revenue, aiming to force the world's second-largest oil exporter to end the war in Ukraine. The revenue from oil and gas sales in December 2025 was 447.8 billion roubles, a significant decrease from the previous year's 790.2 billion roubles and November's 530.9 billion roubles. This data highlights the complex economic challenges Russia faces, with potential implications for its budget and international relations.
