Russia has registered a significant decline in revenues from oil and gas amid a new spike in geopolitical tensions with the West, threatening Moscow’s income from energy sales.
The data indicating a 27% year-on-year drop registered in July comes out along with a projected $150-million shortfall in budget receipts from the same sources in August.
Russia receives less than $10 billion from July oil and gas sales
Russia’s oil and natural gas revenues fell by 27% in July 2025, compared to the same month of 2024, the official TASS news agency reported, quoting numbers published by the finance ministry in Moscow.
In absolute terms, the revenues were down to 787.3 billion rubles (approx. $9.8 billion), from last July’s 1.079 trillion rubles (almost $13.5 billion), the official figures show.
Between January and July this year alone, Russia lost some 18.5% of oil and gas revenues, which decreased to a total of 5.522 trillion rubles ($69 billion) for the whole period, the Ministry of Finance ( Minfin ) added, further detailing:
“Taxes on oil and gas condensate extraction brought 885.2 billion rubles ($11 billion) to the budget in July 2025, which is 34.3% lower than last year.”
At the same time, the department registered a threefold increase in receipts from a special mineral extraction tax and export duty on natural gas in July, which reached 76.9 billion rubles ($960 million) in 2025, up from last year’s 25.1 billion rubles ($313 million).
Russia expects $150 million decline in budget income from oil and gas in August
Meanwhile, the ministry also admitted that next month the shortfall in oil and gas revenues to the federal budget may reach 12.1 billion rubles (over $151 million).
Pointing out that the deviation between forecast and actual figures was positive in July, when it stood at 5.9 billion rubles (nearly $73.8 million), the Minfin said:
“The volume of additional oil and gas revenues of the federal budget is projected at -12.1 billion rubles in August 2025.”
The finance ministry also revealed that payments from the state budget to oil companies under the so-called “fuel damper mechanism” amounted to 59.9 billion rubles in July, or $749 million in July.
This is the first time these payments have risen this year. Their lowest level was in June, at 34.5 billion rubles, and the highest total, 156.4 billion rubles, was recorded in January.
Under the scheme, introduced in 2019, if the difference between export fuel prices and the indicative domestic price determined by law is positive, the state pays oil companies. And if the difference is negative, oil companies refund the budget.
The latest official stats on oil and gas trade come amid growing pressure on Russian energy exports, as part of Western sanctions aimed at curbing Moscow’s ability to fund its ongoing invasion of Ukraine.
In mid-July, the European Union approved a new price cap for Russian oil, set to around $15 below global market rates, with its latest, 18th package of punitive measures. The EU also wants to thwart any efforts to restore the Nord Stream gas pipelines in the future.
At the end of last month, U.S. President Donald Trump imposed 25% tariffs on India, accusing the world’s most populous democracy of being a major buyer of Russian energy, among other sins. Shortly after, Russian oil tankers were reportedly seen idling off the Indian coast.
However, officials in New Delhi made it clear on the weekend that no instructions have been issued for Indian companies to reduce Russian oil imports. And this week, Russia itself slammed the tariff threats coming from Washington, stressing India has the right to choose its trade partners.
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