Russia's Oil Prices Hit 3-Year Low Amid Sanctions

Russian government data revealed a significant drop in the indicative price of oil used for calculating taxes, reaching the lowest level since May 2020. This decline in prices has led to a decrease in state energy revenue, potentially hitting the lowest point since 2020 by the end of 2025.

The indicative price of oil, crucial for Russian government tax calculations, plummeted to its lowest since May 2020, according to government data released Tuesday. This signals a significant decline in state energy revenue.

Between January and November 2025, state energy revenue fell by 22%, with projections indicating it may hit the lowest annual level since 2020. December's indicative price is expected to drop to $39 a barrel, further exacerbating the revenue shortfall.

The economy ministry highlights a decrease from $55.60 in 2025 to $67.90 per barrel in 2024. Despite a budget forecast of $59 for 2026, Western sanctions continue to drive international discounts on Russian oil.

(With inputs from agencies.)