Russia's federal budget revenue from oil and gas sales may drop in May by around 55 billion roubles (US$708 million) compared with April, due to a fall in profit-based tax on oil production, Reuters calculations showed on May 18.
According to the calculations, oil and gas revenues may reach 593 billion roubles, down from 648 billion roubles in April and 886 billion roubles in May 2022.
The decline in income from oil - a huge source of budget revenue — is likely to exacerbate an already high budget shortfall. Russia recorded a 3.4 trillion-rouble ($44 billion) deficit in the first four months of the year as spending rose, not least from Moscow's military campaign in Ukraine, and energy revenue fell.
Russian oil and gas are subject to a range of Western sanctions limiting sales to the West and also attempting to cap the global price of Russian oil.
Finance Minister Anton Siluanov said on May 17 that Russia's revenues from oil and gas were behind plan.
Profit-based tax may drop to as low as zero this month as the taxpayers are allowed to pay it approximately once in a quarter, and it's not usually in May.
In March and April, the tax generated payments to the budgets of 221 billion roubles and 185 billion roubles respectively, according to finance ministry.
At the same time, the mineral extraction tax revenue on oil may rise this month by 128 billion roubles from April thanks to an increase in prices of Russia's flagship Urals oil blend and a weaker rouble.
Recommended Reading
Hot Permian Pie: Birch’s Scorching New Dean Wells in Dawson County
2024-10-15 - Birch Resources is continuing its big-oil-well streak in the Dean formation in southern Dawson County with two new wells IP’ing up to 2,768 bbl/d.
Matador’s U-lateral Delaware Tests Outproduce 2-mile Straight Holes
2024-10-30 - Matador Resources' results from eight Loving County, Texas, tests include two 2-mile U-turn laterals, five 2-mile straight laterals and one 1-mile straight lateral, according to state data.
SM, Crescent Testing New Benches in Oily, Stacked Uinta Basin
2024-11-05 - The operators are landing laterals in zones in the estimated 17 stacked benches in addition to the traditional Uteland Butte.
Coterra Takes Harkey Sand ‘Row’ Show on the Road
2024-11-20 - With success to date in Harkey sandstone overlying the Wolfcamp, the company aims to make mega-DSUs in New Mexico with the 49,000-net-acre bolt-on of adjacent sections.
Northern’s O’Grady: Most of ‘Best’ Acres ‘Already Been Bought’
2024-10-24 - Adding new-well inventory going forward will require “exploration or other creative measures,” said Nick O’Grady, whose Northern Oil and Gas holds interests in 10,000 Lower 48 wells.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.