State payments to oil exporters consume nearly half of Russia’s windfall from high prices, data show
Russia’s Finance Ministry released April oil and gas revenue figures showing taxes paid by exporters for March — the first full month of the U.S.-Israeli war with Iran, when oil prices spiked sharply. The independent Russian political newsletter Faridaily was among the first to flag the publication.
Russia’s budget collected nearly 917 billion rubles in mineral extraction taxes in April, up from 443 billion in March, according to the Finance Ministry’s data. Of that total, 771 billion was attributable to oil.
At the same time, the state sharply increased payments to oil companies to hold down gasoline prices and fund the modernization and repair of oil refineries, Faridaily reported. Those outlays came to nearly 380 billion rubles.
“These payments ate up a large portion of the windfall from the conflict in Iran. In the end, oil and gas revenues for April came to 856 billion rubles against a forecast of 835 billion — meaning actual revenues exceeded the plan by only a symbolic margin,” Faridaily wrote.
An unnamed Finance Ministry official told the outlet that the ministry expects additional oil and gas revenues in May. On May 3, Finance Minister Anton Siluanov said the state would receive an additional 200 billion rubles from high oil prices — a figure Faridaily’s source said referred primarily to Siluanov’s estimate for May.
Oil prices surged amid the U.S.-Israeli war with Iran and the closure of the Strait of Hormuz. Brent crude surpassed $125 a barrel on April 30; as of May 6, it was trading at around $100. Russian oil reached its highest levels since 2013. Asian countries increased their purchases of Russian oil following the easing of sanctions.
Meanwhile, Ukraine’s armed forces have been actively striking Russian oil facilities in recent weeks, seeking to hinder the Kremlin’s ability to profit from higher prices. In late March, Reuters reported that 40 percent of Russia’s oil export capacity had been put out of commission.
The strikes triggered environmental disasters in Tuapse and Perm as petroleum products burned.
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