Photo: Pexels
Russia’s budget revenues from oil and gas fell to a five-year low last year, dropping 24% compared with 2024, Bloomberg reports. The decline comes amid lower crude oil prices and reduced gas exports, hitting the sectors that are crucial for financing the war.
According to the Russian Ministry of Finance, the country received a total of 8.48 trillion rubles ($108 billion) from oil and gas in 2025, the lowest level since 2020. Russia relies heavily on taxes from these industries to fund its state budget. To cover the growing gap between revenues and expenditures, the government drew more than half from the National Wealth Fund and resorted to expensive borrowing.
Oil revenues alone fell over 22% year-on-year. The average price of Urals crude, Russia’s main export blend, was $57.65 per barrel in 2025—15% lower than in 2024. The strengthening ruble also contributed to lower budgetary income. Trade with China shrank for the first time in five years, totaling 1.63 trillion yuan (around $234 billion), amid a drop in Russian demand for Chinese cars.
