The contribution of Russian oil revenues to the government budget rose by 50% in May 2024 compared to 2023, driven by higher crude prices and Moscow’s adaptation to international sanctions.

Oil-related taxes rose to 632.5 billion rubles last month; total oil and gas revenues reached 793.7 billion rubles, an increase of 39%.
Despite this rise, Moscow lowered its overall profit forecast for the sector for 2024. It will receive 10.99 trillion rubles in oil and gas revenues this year, after it was expected to receive 11.5 trillion rubles.

This adjustment is due to the government’s expectations of a decline in the export prices of Russian crude oil and natural gas this year, with Russian crude oil expected to trade at around $65 per barrel after it was expected to trade at $71.3.

On the other hand, the gas export price was set at $252.8 per thousand cubic meters, a decrease of about 6% from previous expectations.
Part of the decline in revenue forecasts is due to the huge amounts of subsidies provided to fuel producers in the country. The government paid approximately 202 billion rubles to companies for domestic supplies of diesel and gasoline.

Despite the challenges, Russia has managed to adapt to international sanctions, including a European Union ban on Russian oil imports, by using a huge fleet of oil tankers and selling its crude to customers in Asia.