Russia's oil and gas revenues fell by 46% in January

07.02.2023 0 By NS.Writer

Revenues of the Russian budget in January 2023 decreased by 35% compared to the same period last year. The budget deficit amounted to 1,76 trillion rubles, although a year earlier a surplus of 125 billion was observed, the Russian Ministry of Finance reports, writes sibreal.org.

Vladimir Vladimirovich Putin

According to the agency, Russian budget revenues in January amounted to 1,35 trillion rubles. Oil and gas expenses decreased by 46% and amounted to 426 billion rubles. This is due to a decrease in price quotations for Urals oil and a reduction in natural gas export volumes. Non-oil and gas revenues amounted to 931 billion rubles, falling by 28% per hour. This is explained by the reduction of domestic VAT and profit tax revenues. It is noted that the budget indicators "correspond to the dynamics established during the formation of the law on the budget."

Budget expenditures amounted to 3,1 trillion rubles, showing an increase of 59%. According to the Ministry of Finance, this is connected "with the prompt conclusion of contracts and the advance of financing for separate contracted expenses."

As Bloomberg notes, the budget deficit in January turned out to be the most significant since 1998. According to the agency, the increase in income is due to the war in Ukraine.

Forbes reports that in January, the Russian Ministry of Finance for the first time sold gold (3,6 tons) from the National Welfare Fund to cover the budget deficit. The authorities also realized 2,3 billion yuan. In total, this brought 38,5 billion to the budget. At the same time, the volume of FNB in January grew by 373 billion rubles and amounted to 10,8 trillion rubles.

European Union countries introduced a price ceiling for Russian oil at the beginning of December 2022 due to the invasion of Ukraine. Two weeks later, they also introduced a price ceiling for gas supplies, which will come into effect from mid-February. The maximum oil price will be 60 dollars per barrel. In the first week of the effect of the price ceiling and the ban on the delivery of Russian oil by sea, exports from Russia decreased by 54%. The price cap on Russian oil became part of the next package of sanctions in response to Russia's invasion of Ukraine. In addition, Russia lost part of the European pipeline gas market due to the suspension of the Yamal-Europe and Nord Stream-1 projects.
Russian President Vladimir Putin responded by banning the supply of Russian oil and petroleum products to countries that use the price ceiling.

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