A third of the Russian budget consists of oil and gas tax revenues. picture alliance/dpa | Karl Josef Hildenbrand
Russian crude oil exports surged last week, hitting the highest level in almost two months.
However, the Kremlin’s oil and gas tax revenues fell 26 percent in June from a year earlier.
These taxes account for a third of Moscow’s budget, which is heavily burdened by the Ukraine war.
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Russian crude oil exports rose to last week Seven week highbut these gains were not enough to offset the decline in energy tax revenues.
According to ship-tracking data compiled by Bloomberg, seaborne exports rose to 1.3 million barrels per day in the seven days ended July 2, marking a rebound from a maintenance-related lull the previous week and the four-week average to 3.39 million barrels per day.
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tax revenue fell
However, Russia’s Treasury Ministry said tax revenues from oil and gas exploration fell 26 percent in June from a year earlier to about 529 billion rubles ($5.7 billion), continuing the decline that started in March.
The decline in tax revenue comes as oil prices have fallen this year on expectations of weaker demand from China, whose economic recovery has stalled in the wake of the COVID crisis.
Gas exports to Europe collapsed
At the same time, Russian gas exports to Europe have plummeted, the biggest drag on revenues from this energy source.
Oil and gas tax revenue accounts for a third of Moscow’s budget, which is already strained by military spending related to the war in Ukraine.
The Kremlin has tried to prop up oil prices and recently Connected to Saudi Arabiato extend voluntary production cuts into the summer.
However, earlier pledges by Russia to cut production have been followed by increases in oil exports, suggesting Moscow has not actually cut production.
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