Russia’s Oil and Gas Revenues Plunge Amidst Market Challenges

In 2025, Russia's federal budget revenues from oil and gas dropped significantly due to falling oil prices and an appreciating rouble. The revenues, a crucial source for the Kremlin amid ongoing military efforts, fell to levels not seen since 2020, affected by global oversupply concerns and Western pressures.

In a significant economic shift, Russia's federal budget revenues from oil and gas plummeted by 24% in 2025, reaching their lowest since 2020. This decrease, reported by the Finance Ministry, came as oil prices dropped sharply and the rouble gained strength.

Oil and gas revenues are pivotal for the Kremlin, comprising a quarter of its budget, heavily strained by defence expenditures since the Ukraine conflict onset in 2022. Last year, these revenues dipped to 8.48 trillion roubles ($108.03 billion), down from 11.13 trillion in 2024, amid an 18% oil price drop, the steepest since 2020.

The Finance Ministry's revised estimates fell short at 8.65 trillion roubles, down from an initial projection of 10.94 trillion. As Western allies push to curb Russian oil revenue to end the Ukraine war, December 2025 saw revenues dip further to 447.8 billion roubles, compared to 790.2 billion a year prior.

(With inputs from agencies.)