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Russia’s Oil and Gas Revenues Increased by 82%
Russia’s war economy continues to produce surprises both for its adversaries in the West and for its ardent (sometimes self-interested) supporters around the world. Oil and gas revenues of the Russian budget for the first four months of 2024 amounted to 4.157 trillion rubles. They increased by 82% compared to the same period of 2023, according to the Russian Ministry of Finance. Non-oil and gas revenues of the federal budget amounted to 7.526 trillion rubles, which is an increase of 36.8% year-on-year.
“The accumulation of additional oil and gas revenues in periods of favorable price environment and the use of the National Welfare Fund to cover the shortfall in oil and gas revenues in accordance with the parameters of the “budget rule” ensures the sustainability of the budget system to fluctuations in the receipt of oil and gas revenues,” the Ministry of Finance said.
Budget revenues from turnover taxes, including VAT, grew by 25.4% year-on-year in January-April. The Ministry of Finance notes that this “forms a stable base for further advanced growth of revenues”.
The results reported by the Ministry of Finance look striking against the background of unprecedented economic sanctions imposed on the Russian Federation. In the third year of the war in Ukraine, even the West has begun to realize that the system of…