Russia July Oil and Gas Revenues Drop 27% Amid Sanctions and Geopolitical Tensions

Russia's oil and gas revenues in July 2025 dropped by 27% year-on-year, hitting a total of 787.3 billion rubles ($9.8 billion), a sharp decline from the 1.079 trillion rubles ($13.5 billion) recorded in the same period of 2024, according to the Ministry of Finance as reported by the TASS news agency [1]. The fall in revenue reflects heightened geopolitical tensions with the West and the continued impact of international sanctions on Russian energy exports [1].

Over the first seven months of 2025, total oil and gas revenues stood at 5.522 trillion rubles ($69 billion), marking an 18.5% decline compared to the same period in the previous year [1]. The finance ministry reported that taxes on oil and gas condensate extraction accounted for 885.2 billion rubles ($11 billion) in July, a 34.3% drop compared to the same month in 2024 [1].

While overall revenue from oil and gas fell, the special mineral extraction tax and export duty on natural gas saw a threefold increase, rising to 76.9 billion rubles ($960 million) in July, from 25.1 billion rubles ($313 million) in the same period last year [1].

Looking ahead, the Ministry of Finance warned of a projected $150 million shortfall in oil and gas revenues for August, with a deficit expected to reach 12.1 billion rubles ($151 million) [1]. This contrasts with the 5.9 billion rubles ($73.8 million) surplus reported in July, indicating a worsening outlook for Moscow’s energy-related budget income [1].

The finance ministry also revealed payments of 59.9 billion rubles ($749 million) through the so-called “fuel damper mechanism” in July, the first time this amount has increased this year [1]. The mechanism, introduced in 2019, redistributes funds based on the difference between export fuel prices and domestically set indicative prices [1].

The decline in oil and gas revenues comes amid ongoing Western sanctions targeting Russia’s energy sector, aimed at limiting its financial support for its military operations in Ukraine. In mid-July, the European Union approved a new price cap on Russian oil, set at around $15 below global market rates, as part of its 18th package of sanctions [1]. The EU also reiterated its stance against the potential restoration of the Nord Stream gas pipelines.

Meanwhile, U.S. President Donald Trump imposed 25% tariffs on Indian imports, citing India’s role as a major buyer of Russian energy. Reports showed Russian oil tankers idling off India’s coast, but Indian officials stated no official instructions had been issued to reduce Russian oil imports [1]. Russia has also dismissed the tariff threats, asserting that India has the right to choose its trade partners [1].

These developments highlight the growing challenges to Russian energy exports and the financial strain on the country’s budget as a result of the international pressure.

Source: [1] Russia received less than $10 billion from July oil and gas sales (https://coinmarketcap.com/community/articles/6892596284ea135df57b0e8c/)