Russia faced a triple blow: lower global prices, increased discounts and a stronger ruble.
In January, Russia's oil revenues fell to their lowest level in more than five years as the country faced a triple blow: lower global prices, increased discounts and a stronger ruble.
Tax revenues from the oil industry have halved to 281.7 billion rubles ($3.7 billion) compared to January 2025. Total revenues of the oil and gas sector also decreased by 50% to 393.3 billion rubles.
These two industries provide about a quarter of the Russian budget.
Brent crude futures declined by 15% year-on-year during the reporting period, but the impact on Russia was exacerbated by US sanctions. January oil revenues were the lowest since June 2020.
Russia's flagship Urals crude was trading at a discount of about $26 per barrel against Dated Brent at the ports of shipment. According to Argus Media, this discount has more than doubled from about $12 a year earlier.
The widening of the price spread followed the blacklisting of the two largest Russian producers, Rosneft and Lukoil, in the United States.
The Russian Ministry of Finance calculated oil revenues based on the average Urals price in December at $39.18 per barrel, which is 38% lower than a year earlier. This figure is significantly lower than the government's 2026 budget price of $59 per barrel.