It is expected that Russian budget deficiency this year will exceed initial forecasts more than three times.
Despite the rapid rising oil prices in the world, Russia’s income from exporting raw materials remains under pressure due to the strengthening of national currency. It reduces budget revenues, especially against the background of the growing cost for war against Ukraine. Bloomberg reported this on Thursday, June 19.
On June 13, the cost of Russian oils exceeded $ 60 per barrel, almost completely recovered after the fall at the beginning of the year. However, at the rate of the Central Bank of Russia that day, the exporters received only about 4,957 rubles per barrel, which was about 30% less than the beginning of 2025.
It puts Russia in a disadvantage compared to OPEC+partners, such as Saudi Arabia, whose money is tied to the dollar. For the Kremlin, whose budget is thirdly filled with the cost of oil and gas, and the costs are more appointed to rubles, this means a significant reduction in financial resources.
It is expected that Russian budget deficiency this year will exceed initial forecasts more than three times. Slightly, oil workers’ losses are paid by the state subsidies of the Russian Federation, however, the strengthening of the ruble reduces the profitability of exports.
Since the beginning of the year, the ruble was strengthened by almost 23% – up to 78.72 per dollar. This is also explained by the high rate of accounting of the Bank of Russia and the expectations of a more mild United States exchange rate related to Moscow.
Although current oil prices allow companies to invest in labor, the manufacturers themselves admit that the Ruble rate creates difficulties. According to Deputy Prime Minister Alexander Novak, the situation is “complicated by life” of the industry. Whereas the chapter Rosneft Igor Sechin recently criticized the actions of the Central Bank of the Russian Federation, accusing the low cost of oil in rubles.
Analysts have not yet predicted the return of the ruble to vulnerable positions. Global finances note that high interest rates and increasing prices for raw materials prevent a sharp weakening of the ruble. According to their estimates, returning to a 90-100 rubles per dollar level is only possible with a new collapse in raw materials and inflation acceleration.
Remember that Ukraine suggested that Russia’s maximum price set for $ 30 per barrel.
Russian oil revenues fell into a two -a minimum
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Source: korrespondent
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.