According to Reuters calculations, Russia’s oil and gas revenues are expected to reach approximately 733 billion roubles ($7.6 billion) in September, representing a 14% increase from the previous month. This figure is compared to the 688 billion roubles earned in September 2022. The rise in revenues can be attributed to a significant month-on-month increase in mineral extraction tax proceeds, which reached 1.1 trillion roubles.
Net revenues, which are smaller than gross tax receipts, include reverse payments such as the “damping mechanism.” The damping mechanism subsidizes companies to continue supplying the domestic market even when fuel export prices are high. In September, the budget is projected to return around 278 billion roubles to refineries under this mechanism.
The oil and gas sales in Russia play a crucial role in the country’s commodity-oriented economy. Additionally, these revenues are essential for financing what Russia refers to as its “special military operation” in Ukraine. It is estimated that the finance ministry will release its data on budget revenues from oil and gas in early October.
Despite the expected increase in September, the finance ministry projects a decline of 23% in oil and gas revenues for the entire year. The projected amount stands at 8.94 trillion roubles, while the budget deficit is expected to reach nearly 3 trillion roubles, equivalent to 2% of gross domestic product.
– Reuters calculations
– Industry sources and official statistics on oil and gas production, refining, and supplies
– The finance ministry’s projections on budget revenues from oil and gas
Note: The original article did not contain any specific URLs for these sources.