Russian treasury hit hard by steep fall in oil, gas revenues

Russia’s oil and gas revenues have experienced a significant decline, with federal budget receipts falling sharply by 35.4 per cent year-on-year as of the end of May 2025.

In May 2025 alone, the federal treasury collected 512.7 billion rubles ($6,4 million) from oil and gas sales, a steep drop from the 793.7 billion rubles ($10,01 million) recorded in May 2024. This represents a year-over-year decrease of 281 billion rubles ($3,5 million) in monthly energy revenues, Caliber.Az reports per Russian Ministry of Finance.

When compared with earlier months of 2025, the downward trend is even more pronounced. Oil and gas revenues in March and April exceeded one trillion rubles each month—approximately 1.08 trillion rubles ($13,6 billion) in March and 1.086 trillion rubles ($13,7 billion) in April.

Cumulatively, from January through May 2025, the federal budget’s oil and gas income totaled 4.24 trillion rubles ($53,4 billion). This amount is 37.4 percent lower than the same five-month period in 2024, underscoring the sustained pressure on Russia’s key revenue source amid shifting global energy markets and geopolitical challenges.

The sharp contraction in oil and gas revenues poses significant fiscal challenges for the Russian government, which heavily relies on energy exports to fund public spending and economic initiatives. 

By Vafa Guliyeva