Russia’s Oil Revenues Plunged By 48% In February

Oil Price ^ | 3/3/2023 | Charles Kennedy

[marcusmaximus]

Russian tax revenue from crude oil and petroleum products plummeted by 48% in February from a year earlier due to the much lower price of Russia’s flagship crude grade after the EU banned imports of Russian oil, according to Bloomberg estimates based on official Russian data.

Total tax revenues from oil and natural gas dipped by 46% year over year to $6.9 billion (521 billion Russian rubles) in February, per data from the Russian Finance Ministry published on Friday.

Russia’s revenues from crude oil and oil products alone crumbled by 48% annually to $4.8 billion (361 billion rubles), according to Bloomberg’s calculations. Oil accounted for more than two-thirds of Russia’s energy tax revenue in February.

Russian natural gas revenues also plummeted last month compared to February 2022, when Russia invaded Ukraine. Natural gas revenues slumped by 42% as Russia cut off gas supplies to a number of EU customers after the invasion.

The plunge in the price of the flagship Russian crude grade, Urals, was the key reason for the lower revenues for the country for both January and February this year.

Russia’s budget was $23.3 billion (1.76 trillion rubles) into deficit in January, compared to a surplus for January 2022, as state revenues from oil and gas plunged by 46.4% due to the low price of Urals and lower natural gas exports, the Russian Finance Ministry said last month.

Russia’s budget revenues from oil and gas plunged in January by 46% compared to the same month last year due to the sanctions on Russian oil exports, which led to a slump in the price of Russia’s flagship crude grade.

The average price of the Urals blend stood at $49.52 per barrel in January and February 2023, compared to $88.89 per barrel for the same months last year

[nickfrost1]

As the article for the thread points out, reported oil tax revenue has dropped 48% compared to last year. Its kind of hard to explain that away as unrelated to sanctions.==

Because Russia severely diminished the IMPORT from Europe so she don’t need same amount of europian cash nomore. Same time the trades with Chine doubled BUT this trades are payed in local moneys chinese or russian. If trade with Chine doubled and going further up then how Russia pays for it? By doubling HER export to China. And this export not oil and gas but many many other things. For example. China buys Russian wheat and coal.

The logistic to China even easier than to Europe and trades go by local currencies. SO West will never know how large this trade really is.

My personal view on sanctions is in our stores and malls. Some europian brands are gone BUT we have replacements. Even cheaper and better then previous. China went in and we with no problems.

I don’t even mention that the manufacturing in Russia is booming now too. Because we need to replace those europian products.

Not everything in Russia depend on oil and gas trades.