Russia’s tax revenues from oil and gas plunged 46% in January as the price cap on oil exports imposed by the US and its allies over the Kremlin’s invasion of Ukraine hit hard.
(Bloomberg) — Russia’s tax revenues from oil and gas plunged 46% in January as the price cap on oil exports imposed by the US and its allies over the Kremlin’s invasion of Ukraine hit hard.
Combined with a 59% increase in spending amid the war, the drop pushed the deficit to 1.76 trillion rubles ($25 billion), the Finance Ministry said, the worst start to the year since at least 1998. Still, the ministry said it remains on track to meet budget targets this year.
The price cap and other restrictions on Russian energy exports have hit Russian revenues hard as the country’s oil exports trade at a substantial discount to broader market prices. Gas exports also are down as Russia has cut the bulk of its exports to Europe, once its main market.
Non-energy revenues also dropped 28% in January, the ministry said, blaming in part a change in rules for the value-added tax.
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