(BOE Report) – Russia’s federal budget revenues from oil and gas dropped by 24% in 2025 to the lowest level since 2020, according to Finance Ministry data, as oil prices fell while the rouble appreciated.
Oil and gas revenue is the leading source of cash for the Kremlin, making up a quarter of federal budget proceeds that have been drained by heavy defence and security spending since Russia began its military campaign in Ukraine in February 2022.
The ministry reported that oil and gas revenues fell last year to 8.48 trillion roubles ($108.03 billion), compared to 11.13 trillion roubles in 2024. Oil prices fell more than 18% in 2025 – their steepest yearly drop since 2020 – amid growing oversupply concerns.
The proceeds were also lower than the 8.65 trillion roubles expected by the finance ministry in its downwardly revised estimates from an initial forecast of 10.94 trillion roubles for 2025.
Proceeds from oil and gas sales were last at such levels in 2020, when, amid the COVID-19 pandemic and the collapse of the oil market, they fell to 5.24 trillion roubles.
Ukraine and its Western backers have repeatedly said they want to curb Russian oil revenue to force the world’s second-largest oil exporter to end the war in Ukraine.
In December 2025, oil and gas revenue fell to 447.8 billion roubles from 790.2 billion roubles in the same month in 2024 and 530.9 billion roubles in November 2025.
(Reporting by Darya Korsunskaya and Vladimir Soldatkin; editing by Guy Faulconbridge)
