The drop in revenue follows a drop in oil prices amid falling demand in China and rising supplies in the USA, Brazil, and Canada.
Russian government oil revenues fell 29% in October compared to 2023 due to lower oil prices and increased government payments to fuel producers. Bloomberg wrote this on Tuesday, November 5.
Oil taxes, a key source of funding for Russia’s war against Ukraine, fell to 1.05 trillion rubles ($10.7 billion) last month, down from 1.48 trillion rubles in 2023.
Total revenue from the oil and gas industry, 86% of which are oil production taxes and the so-called income tax, fell by more than a quarter to RUB 1.21 trillion.
The drop in revenue follows lower oil prices amid falling demand in China, the biggest consumer, and rising supplies in the United States, Brazil, Canada and Guyana.
Russia’s Finance Ministry calculated October taxes based on the price of Urals crude, the country’s main mixed export, at $63.57 a barrel, down from $83.18 a year earlier.
October earnings were more than 75% higher than September. This is due to the fact that one of the main Russian taxes on oil, the income tax, is paid four times a year: in March, April, July and October.
In October, the oil revenues of the Russian budget decreased due to government subsidies to oil refining companies, which partially compensate them for the difference in prices for motor fuel in Russia and abroad .
According to the Russian Ministry of Finance, the government paid 106.6 billion rubles ($1.1 billion) to national fuel producers for the domestic supply of diesel fuel and gasoline. This compares to no payment in 2023, when domestic fuel prices exceed the threshold set in the payment formula, allowing the government to keep more funds in the budget.
We remind you that at the end of October, oil prices dropped significantly in price due to reduced risks for the supply of “black gold” on world markets.
Source: korrespondent
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