Russian Oil and Gas Revenue Set to Decline by 2027

A draft budget indicates that Russia's oil and gas revenue will decrease from 11.3 trillion roubles in 2023 to 9.77 trillion roubles by 2027 due to lower commodity prices and tax changes.

In a recently unveiled draft budget, Russia is projecting a significant decline in state revenue from oil and gas by 2027. The document forecasts that the income from these sectors will drop to 10.9 trillion roubles ($117.3 billion), which accounts for 5.1% of the GDP, by 2025, from an estimated 11.3 trillion roubles this year.

The revenue is expected to fall even further, reaching 10.56 trillion roubles in 2026 and 9.77 trillion roubles by 2027. These decreases are primarily attributed to lower commodity prices and impending tax changes.

This trend signals potential economic shifts and budgetary challenges for the Russian state in upcoming years, marking a notable shift in the financial landscape driven by its natural resource sectors.

(With inputs from agencies.)