Russian Oil, Gas Revenues Plunge 24% to Lowest Level Since 2020

Russia’s federal budget revenues from oil and gas fell sharply in 2025, dropping 24% to their lowest level since 2020, according to data released by the Ministry of Finance. 

The decline reflects weaker oil prices and the ruble’s strengthening, adding pressure to the Kremlin’s main source of fiscal liquidity.

Oil and gas revenues account for roughly a quarter of Russia’s federal budget, which has been heavily strained by massive defense and security spending since Moscow launched its military campaign in Ukraine in February 2022.

The Ministry reported that oil and gas revenues totaled 8.48 trillion rubles ($108.03 billion) last year, down from 11.13 trillion rubles in 2024. Oil prices fell more than 18% in 2025, marking the largest annual decline since 2020 amid growing concerns of a global supply surplus.

The actual revenue also fell short of the Ministry’s revised projection of 8.65 trillion rubles, down from initial forecasts of 10.94 trillion rubles. Comparable revenue levels were last seen in 2020, when oil and gas receipts dropped to 5.24 trillion rubles due to the COVID-19 pandemic and a global oil market collapse.

Western countries, along with Ukraine, have signaled their intent to limit Russian oil revenues in an effort to pressure Moscow to end its war in Ukraine, Reuters reported.

Monthly data highlights the sharp decline: in December 2025, oil and gas revenues fell to 447.8 billion rubles, down from 790.2 billion rubles in December 2024 and 530.9 billion rubles in November 2025, underscoring the persistent downward trend in Russia’s hydrocarbon income.