Russia’s 2023 Oil and Gas Revenue Curbed by Sanctions, Cheaper Crude

  • State income from oil, gas taxes was down 24% from prior year
  • Move reflects lower oil prices, reduced volume of gas exports

A gas storage facility in Kasimov, Russia. 

Source: Bloomberg

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Russia’s budget deficit widened more than expected last year, as oil and gas revenues fell by almost a quarter and the Kremlin increased spending amid its war in Ukraine.

The fiscal gap reached 3.2 trillion rubles ($36.1 billion), or 1.9% of gross domestic product, Finance Ministry data shows. That’s 300 billion rubles higher than both the budget target and the late-December estimate of Finance Minister Anton Siluanov.