Russia's oil and gas revenues have fallen by almost 50%

In the first half of 2023, revenues from the oil and gas industry to the budget of the aggressor country Russia decreased by 46.9% and amounted to 3.382 trillion rubles against 6.376 trillion rubles a year earlier. This was reported by Russian media on Wednesday, July 5, citing data from the Russian Ministry of Finance.

It is claimed that in June of this year, revenues decreased by 7.3% compared to May - to 528.6 billion rubles. Compared to June 2022, the figure fell by 26.4%, when revenues amounted to 717.9 billion rubles.

According to the Ministry of Finance, in January-June, the tax on mineral extraction - oil and condensate - brought in RUB 2.984 trillion to the budget, down 1.73 times, and the export duty - RUB 105.9 billion (down 3.25 times).

In May, the Russian budget deficit already exceeded the annual plan due to a significant drop in oil and gas revenues.

But the aggressor country Russia is trying to influence pricing and increase the cost of oil. To do this, in addition to the previously announced volumes, the reduction in oil production will reduce its supply by another 500 thousand barrels per day (bpd). This was stated by Russian Deputy Prime Minister Alexander Novak, Russian media reported on Monday, July 3.

Earlier, Russia decided to voluntarily reduce oil production by 500 thousand bpd from the average February values in March. The production cut was then extended until June inclusive, and then this decision was extended until the end of the year. The new decision concerns exports, not production.

In parallel with Russia's statement, Saudi Arabia also made a decision to extend its voluntary 1 million bpd oil production cut, which was originally scheduled for July, to August. In August, as in July, Saudi Arabia's oil production will amount to 9 million bpd. The report emphasizes that this voluntary reduction is in addition to the earlier decision to reduce production by 500 thousand bpd and may be extended for a longer period.

Author - Serhii Kolomiets, 06/07/2023