Oil‑Revenue Surge Shakes Russia’s Budget

Russia’s government earned a record 9. 3 billion dollars from oil and gas taxes in May, up more than a third compared with last year. The rise comes as global oil prices climb after tensions in the Middle East, giving the country a much-needed boost. The tax haul now makes up about 20 percent of all state income, a share that has become increasingly vital as defence costs grow. In April the revenue dipped because the government did not receive its usual cycle of profit‑based taxes, but the May jump shows how sensitive the budget is to market swings. Russia, the world’s third biggest oil producer after the United States and Saudi Arabia, has relied on higher prices to offset financial pressure from its war in Ukraine.

Over the first five months of this year, total oil and gas revenue fell roughly 30 percent from the same period last year, a trend that has alarmed officials. The 2026 budget plans for about 8. 92 trillion roubles from these sectors, while total expected revenue for the year tops 40 trillion roubles. Last year’s oil and gas income fell by 24 percent to 8. 48 trillion roubles, the lowest level since 2020. The government’s heavy spending on defence and security means that any dip in energy revenue can have wide‑ranging effects on public services and infrastructure.

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