Russian oil and Gas Revenues Jump 57% m/m In October

The Finance Ministry reported on Tuesday that the proceeds from oil and natural gas sales to Russia's federal government in October increased by 57% compared to September, to reach 1.21 trillion Russian roubles (12.35 billion dollars), thanks to the quarterly payment of oil profit tax.

This is compared to a calculation-based forecast of 1,17 trillion roubles, down from 1,63 trillion roubles as of October 2023.

The Kremlin's most important cash source has been oil and gas revenues, which have accounted for between a third and a half the total federal budget revenue over the last decade.

Data showed that payments made under the profit-based taxes amounted 491.6 billion Russian roubles (as opposed to only 500 million roubles) in September.

The government budgeted 10.7 trillion roubles in federal revenue from oil and natural gas sales for 2024, an increase of 21% over 2023 when lower oil prices and decreased gas exports reduced revenues by 24%.

The initial target of 11.5 trillion roubles has been revised downwards to the current 2024 goal.

Since the launch of its so-called special military operation (SMO) in Ukraine, in February 2022 Russia has increased spending on defence and security, leading to deficits that have exceeded 3 trillion roubles for two consecutive years, or about 2% GDP.

(source: Reuters)