Reuters calculations showed today, Thursday, that Russia's federal budget revenues from oil and gas sales may decrease by about 55 billion rubles (approximately 708 million dollars) due to a drop in the oil production profit tax. According to the calculations, oil and gas revenues stand at 593 billion rubles, down from 648 billion in April and 886 billion in May 2022. It is likely that the decline in oil income, a major source of budget revenue, will increase.
Russian oil and gas are subject to Western sanctions, which limit sales to Western countries, and there are also efforts to impose a global price cap on Russian oil. In this context, Finance Minister Anton Siluanov stated yesterday, Wednesday, that Russia's revenues from oil and gas are lower than expected. The profit tax may drop to zero this month as taxpayers are allowed to pay it nearly once every quarter.
According to the Ministry of Finance, tax payment contributions to the budget reached 221 billion rubles in March and 185 billion in April. Meanwhile, revenues from the mineral extraction tax on oil may rise this month by about 128 billion rubles compared to their level in April, thanks to an increase in the price of the Russian Urals oil blend and the depreciation of the ruble.
