Russia’s oil revenues fell to their lowest level in more than five years in January, as the country faced a triple challenge: lower global prices, wider discounts, and a stronger ruble.
Oil-related tax revenues were halved to 281.7 billion rubles ($3.7 billion) compared with January 2025. Combined revenues from the oil and gas sectors also dropped 50% to 393.3 billion rubles.
Together, these two industries account for around one-quarter of Russia’s budget revenues.
Brent crude oil futures were 15% lower year-on-year over the fiscal period, but the impact on Russia was amplified by U.S. sanctions. January oil revenues marked the lowest level since June 2020.
Russia’s flagship Urals crude traded at around $26 per barrel below Dated Brent at export points. This discount has more than doubled from roughly $12 below the benchmark a year earlier, according to data from Argus Media.
The widening price gap followed the U.S. blacklisting of Russia’s two largest producers, Rosneft PJSC and Lukoil PJSC, which was announced in October.
Russia’s Finance Ministry calculated oil revenues based on an average Urals price of $39.18 per barrel in December, representing a 38% year-on-year decline. This level is well below the government’s budget forecast of $59 per barrel for 2026.
