Russia's Oil and Gas Revenue Surge Fuels Economic Fortunes
Russia's oil and gas revenue from January to September is projected to rise by 49% year-on-year to 8.3 trillion roubles due to higher oil prices and a weaker rouble. This sector remains a vital source of federal budget income. Defence spending has increased amid ongoing geopolitical tensions.
- Country:
- Russia
Russia's oil and gas revenue in the first three quarters of the year is set to rise by 49% year-on-year to 8.3 trillion roubles ($89.4 billion), according to Reuters calculations.
This surge is largely attributed to higher oil prices and a weaker rouble, solidifying oil and gas as crucial sources of Kremlin's cash, accounting for a significant portion of the federal budget proceeds over the past decade. Preliminary data projects September's revenue at 779 billion roubles, reflecting a 5% increase from September 2023, and mirroring August 2024 figures.
The average price of Russia's Urals oil grade climbed to $69.88 per barrel in the first eight months of the year, a notable rise from $56.61 in the same period in 2023. Despite planning for federal revenue of 10.7 trillion roubles from oil and gas sales in 2024, a 21% increase from 2023, the initial target of 11.5 trillion roubles was revised down. Increased defence and security spending following the Ukraine conflict has led to consecutive annual deficits exceeding 3 trillion roubles, about 2% of GDP.
(With inputs from agencies.)
ALSO READ
Kremlin Silent on Black Sea Grain Vessel Strike
Ukraine Approves 2025 Budget with Major Defence Spending Focus
Ukraine's 2025 Budget Draft: A Focused Look on Revenue and Defence
Kremlin Warns of Consequences Amid Alleged Trump Assassination Attempt
Kremlin Deems NATO Chief's Remarks on Ukraine's Western Missile Use 'Dangerous'