Published by Global Banking and Finance Review
Posted on November 24, 2025
2 min readLast updated: January 20, 2026
Russia's oil and gas revenue is projected to drop by 35% in November, driven by lower oil prices and a stronger rouble, affecting the federal budget.
MOSCOW (Reuters) -Russian state oil and gas revenue may fall in November by around 35% from the corresponding month in 2024 to 520 billion roubles ($6.59 billion) due to cheaper oil and a stronger local currency, Reuters calculations showed on Monday.
Oil and gas revenue has been the most important source of cash for the Kremlin, making up a quarter of total federal budget proceeds.
The revenue is also set to decline by 7.4% from October, excluding cyclical payments of the profit-based tax.
The decline in proceeds is painful for Russia, which has heavily boosted defence and security spending since launching its military campaign in Ukraine, which it calls a special military operation, in February 2022.
For the first 11 months of the year, the revenue is seen falling by 22% to 8 trillion roubles, on track to reach the 2025 target.
According to Reuters calculations, the price of the Russian oil for tax purposes declined in the period from January to November, to stand at $57.3 per barrel from $68.3 in the 2024 period.
At the same time, the rouble has strengthened to 81.1 per dollar from 91.7 in the period from January to November 2024.
The finance ministry will publish its estimates on December 3.
The ministry had initially planned to earn 10.94 trillion roubles from oil and gas sales this year, but falling oil prices led it to revise down that expectation last month, to 8.65 trillion roubles.
Oil and gas revenue reached 11.13 trillion roubles last year.
($1=78.9500 roubles)
(Reporting by Reuters; Editing by Clarence Fernandez)
Oil and gas revenue refers to the income generated from the extraction and sale of oil and natural gas. This revenue is crucial for countries that rely heavily on these resources for their economic stability.
Currency hedging is a financial strategy used to protect against potential losses due to fluctuations in exchange rates. It involves using financial instruments to offset the risk of adverse currency movements.
A profit-based tax is a tax levied on the profits earned by a business or individual. It is typically calculated as a percentage of the net income after deducting allowable expenses.
Economic growth refers to the increase in the production of goods and services in an economy over a period. It is often measured by the rise in Gross Domestic Product (GDP).
Explore more articles in the Finance category
