Russia's federal budget revenue from oil and gas sales in July is expected to rise 60% compared to the same month last year, reaching 1.3 trillion rubles ($14.5 billion), Reuters reported on July 31, citing its own calculations.
The increase was driven by a sharp rise in revenue from the additional income tax (NDD) for the second quarter, Reuters noted. The average tax price for Russian oil in April–June was $81.6 per barrel, up from $55.6 per barrel in the second quarter of 2023. In ruble terms, the price rose to 6,096 rubles per barrel from 4,488 rubles a year earlier.
Global oil prices have climbed amid escalating conflict in the Middle East, The Insider reported. Brent crude exceeded $100 per barrel this week for the first time in two months.
However, the effect of higher prices may be short-lived, the outlet noted. In April, a similar surge in oil and gas revenue was offset by state subsidies to extractive companies, Bloomberg reported.
According to Reuters, July revenue also benefited from lower budget spending on compensation for oil refiners: refinery utilization fell in June compared to May. Overall, oil and gas budget revenue for January–July is expected to total 4.9 trillion rubles, 11% lower than the 5.5 trillion rubles recorded in the same period last year.
The Russian Finance Ministry is scheduled to publish actual oil and gas revenue data for July on August 5.