Russia experienced a significant surge in budget revenues from oil and gas during the period of January to May 2024, marking a substantial increase of 73.5% compared to the same timeframe in 2023, as revealed by data from Russia’s finance ministry released on Monday.
According to reports from Russian news agency TASS, the revenues for the Russian federal budget attributed to oil and gas reached an impressive $55.7 billion (4.95 trillion Russian rubles) during these months. The finance ministry expressed optimism about the continuation of this trend, citing expectations of a steady surplus in oil and gas revenues in the upcoming months, in line with the parameters of the socioeconomic outlook.
Additionally, non-oil and gas revenues also witnessed a notable increase, rising by 34% in the period of January to May 2024 compared to the corresponding period last year. This surge in oil revenues comes amid efforts by Moscow to navigate around sanctions and secure buyers for its crude and refined petroleum products.
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Despite challenges posed by sanctions, Russia managed to double its oil income for the budget in April 2024, with revenues reaching $13.5 billion (1.23 trillion Russian rubles), according to data from the Russian finance ministry. Factors contributing to this surge include the weakened Russian ruble and the elevated price of Russia’s flagship Urals crude amidst higher global oil prices, as estimated by Bloomberg.
According to OilPrice.com, the increase in oil revenues underscores the resilience of Russia’s oil sector and highlights the challenges faced by Western countries in curtailing President Putin’s income from oil, despite efforts to cap Russia’s oil prices and intensify sanctions enforcement. In May 2024, Russia’s oil proceeds continued their upward trajectory, experiencing an almost 50% increase from the previous year, further showcasing Moscow’s ability to navigate sanctions and secure favorable prices for its crude.
