Russia recorded near-record oil and gas revenues in January 2025, defying the impact of new sanctions and rising shipping costs. Below is a detailed breakdown of the latest figures and their broader context.
1. Total Oil and Gas Revenues
In January 2025, Russia’s total oil and gas revenues reached 789 billion rubles (RUB), maintaining the high levels observed in December 2024 and nearing an all-time high for this period.
Comparative Figures:
- January 2024: 675 billion RUB
- January 2023: 425 billion RUB
- January 2022: 794 billion RUB (record high)
- January 2021: 491 billion RUB
2. Tax on Additional Income (TAI) & Export Duty
Following amendments to the tax code, the Tax on Additional Income (TAI) (“Налог на дополнительный доход (НДД)”) and export duty are now reported as a combined figure.
January 2025 Revenue: 1,122 billion RUB
- January 2024: 947 billion RUB
- January 2023: 544 billion RUB
- January 2022: 940 billion RUB
- January 2021: 501 billion RUB
3. Government Compensations to Oil and Gas Companies
The Russian government increased financial support to energy companies, with 332 billion RUB allocated in January 2025.
Yearly Comparisons:
- January 2024: 272 billion RUB
- January 2023: 109 billion RUB
- January 2022: 146 billion RUB
- January 2021: 10 billion RUB
These growing compensations help explain why, despite higher revenues from the Mineral Extraction Tax (MET) (“Налог на добычу полезных ископаемых (НДПИ)”) and customs duties, overall oil and gas budget revenues have not surpassed 2022 levels.
4. Efficiency of Tax Collection
In January 2025, 789 billion RUB in oil and gas revenue was collected at an average Brent crude price of 7,950 RUB per barrel.
Brent Crude Price in Rubles (Comparative Data):
- January 2024: 7,120 RUB per barrel
- January 2023: 5,720 RUB per barrel
- January 2022: 6,540 RUB per barrel
Despite Bloomberg reports highlighting a widening discount on Russian Urals crude and increased logistics costs, oil and gas revenues rose by 17% year-on-year (YoY), while the Brent price in rubles increased by 12%.
5. Widening Urals Discount and Impact of Sanctions
The discount on Urals crude relative to Brent has widened significantly, influenced by sanctions and logistical challenges.
Urals Discount Trends:
- December 2024: 5.25 USD per barrel (12.6% increase from November 2024)
- February 2025: 16 USD per barrel (highest since May 2023)
Key Factors Behind the Expanding Discount:
- New US sanctions (November & December 2024) restricting Russia’s access to tanker fleets.
- Soaring shipping costs:
- Black Sea to India: 10 USD per barrel
- Baltic Sea shipments: 13 USD per barrel (48% increase YoY from January 2024)
For the first time since December 2024, Urals crude fell below the 60 USD per barrel price cap set by the Group of Seven (G7), as sanctions pressure forced Russia to offer deeper discounts to sustain export volumes.
Despite mounting geopolitical and economic challenges, Russia’s oil and gas revenues remain resilient, driven by tax adjustments, government interventions, and sustained export strategies. However, rising shipping costs and deepening discounts on Urals crude suggest ongoing difficulties in maintaining this revenue stream in the long term.