Revenues decreased by 5.9% compared to March and reached 647.5 billion rubles last month (688.2 billion rubles in March and 1798 billion rubles in April 2022. Profit-based tax revenue from oil producers decreased from 220.6 billion rubles to 185.4 billion rubles in March. .
Russia’s Finance Ministry aims to halve subsidies to oil refineries from July 2023 and cut 30 billion rubles from the budget in sanctions relief payments. Russia’s mineral extraction tax (MET) and export tax revenues rose 6.5% and 13.5% respectively in April, compared to March, but burdens also increased in the second half of March.
The 2023 budget forecasts a deficit of 2% of GDP, and the Finance Ministry predicts a 23% drop in oil and gas revenues this year, amounting to 8,950 billion roubles.
The decline in oil and gas revenues is a significant problem for Russia, as oil and gas exports contribute 60% of export earnings and 40% of the federal budget.
The European Union and G7 countries introduced sanctions on Russian oil products and imposed a price cap on Urals crude oil.
Cover image: Getty Images.