Last year, the country's budget received a total of 8.48 trillion rubles ($108 billion) in oil and gas taxes, the Finance Ministry reported on Thursday. According to historical data, this is 24% less than the 2024 target and the lowest figure since the beginning of the decade.

Russia, one of the world's three largest oil producers and home to the world's largest gas reserves, relies heavily on tax revenues from these two industries to fill the state coffers. The decline, caused primarily by a combination of lower global oil prices, a stronger ruble, and energy sanctions against Russia, comes as the Kremlin has significantly increased military spending. Oil revenues fell more than 22% year-on-year to 7.13 trillion rubles, reaching their lowest level since 2023, according to Bloomberg calculations.

Concerns about oversupply in the global crude oil market, and in particular discounts on Russian oil due to Western sanctions, have hit the state budget.

The strengthening ruble also contributed to a decline in revenues when converted into the national currency. Last year, the average ruble exchange rate was 85.67 to the dollar, 6.4% higher than the 2024 target, according to Bloomberg calculations.

Tax revenues from Russia's gas industry fell by more than 30%, reaching 1.35 trillion rubles. According to historical statistics, this is the lowest figure since the pandemic-hit year of 2020.