Russia's budget is losing billions: oil and gas revenues fell by 35% in November

Russia's budget is losing billions: oil and gas revenues fell by 35% in November

According to ХВИЛЯ: Russia's oil and gas revenues in November 2024 may fall by 35% to 520 billion rubles (approximately 6.59 billion dollars) due to falling oil prices and a strengthening ruble. This decline also reflects a 7.4% drop in revenues compared to October 2024. In the first 11 months of this year, oil and gas revenues decreased by 22%, amounting to 8 trillion rubles.

The price of Russian oil for tax purposes has decreased from 68.3 to 57.3 dollars per barrel, which has been one of the factors contributing to the decrease in revenues. Furthermore, the ruble has strengthened from 91.7 to 81.1 per dollar, which has also impacted financial performance. The Russian Ministry of Finance initially planned to receive 10.94 trillion rubles from oil and gas sales this year but adjusted the forecast to 8.65 trillion rubles.

Impact of external factors on the oil and gas industry

The situation in the oil and gas industry is further complicated by external factors. The Ryazan oil refinery suspended processing raw materials on November 15, 2024, due to an attack by a Ukrainian drone. The main primary processing unit at the Ryazan plant has an annual capacity of over 8 million tons, while another unit that provided 26% of the capacity was shut down on October 24, 2024. It is known that Ukraine has struck at least 17 large oil refineries.

The decline in Russia's oil and gas revenues may significantly impact the country's economic stability, especially considering the significant dependence of the budget on these revenues.

In the context of growing external threats, including attacks on infrastructure as well as global economic changes, the country may face additional challenges regarding the financing of social programs and supporting economic growth.