Russia's Oil and Gas Revenues: A Budget Lifeline Amid Military Spending

Russia's oil and gas revenues for its federal budget rose by 57% in October from September. The increase was due to a quarterly oil tax payment, although the forecast was slightly lower. The government's 2024 revenue target is adjusted to 10.7 trillion roubles, up 21% from 2023 levels.

Russia experienced a significant increase in its oil and gas revenue for the federal budget in October, with proceeds rising by approximately 57% compared to September. This boost, as reported by the finance ministry, was largely attributed to the quarterly payment of a profit-based oil tax.

While this figure surpassed the predicted 1.17 trillion roubles, it still fell short of the 1.63 trillion roubles recorded in October of 2023. Traditionally, oil and gas revenues have been a crucial component of the Kremlin's budget, contributing to about a third or half of the total federal budget revenue over the past decade.

The anticipated federal revenue from oil and gas for 2024 has been set at 10.7 trillion roubles, marking a 21% increase from 2023. This adjustment follows a revision from an initially higher target, influenced by Russia's increased defence expenditure due to ongoing military activities in Ukraine.