Russia's take from oil slipped to a six-month low in August, with net budget proceeds from oil production at 326.2 billion rubles ($3.76 billion), roughly 22% below a year earlier. Oil and gas together brought in 424 billion rubles for the month, down 16% from last year. By design, the oil line includes extraction tax on gas condensate, the profit-linked levy, and the cost of refinery subsidies.
For August, Russia's tax authority calculated budget revenues using a crude price just over $59 per barrel, far below Urals' monthly average peak of almost $95 in the spring. Earlier this year, Moscow rode a global crude rally tied to the Iran war, which boosted Asian buying of alternatives to Persian Gulf barrels. As diplomacy to de-escalate fighting in the Middle East progressed, Urals prices lost momentum.
Big payouts to keep fuel at home also crimped the monthly haul. Subsidies to refiners exceeded 197 billion rubles in August, more than $2 billion, and have reached almost 916 billion rubles since the start of the year. With refineries contending with persistent Ukrainian drone strikes, authorities in Moscow instituted a broad suspension of most gasoline and diesel shipments overseas and boosted fuel imports to reinforce domestic supply.
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Oil and gas provide about a fifth of Russia's budget and help fund the war in Ukraine. Softer prices plus heavier subsidies dented revenues.
