Russia's oil and gas revenues plummeted in January, reaching their lowest point since July 2020. The decline was primarily attributed to lower crude oil prices and a stronger Russian ruble. This significant drop in revenue has a substantial impact on Russia's state budget, which faced a 2.6% GDP budget deficit in 2025. The January revenue figure of 393.3 billion roubles ($5.10 billion) was notably lower than the previous month's 447.8 billion roubles. Oil and gas revenue, a critical source of cash for the Kremlin, constitutes nearly a quarter of the federal budget, which has been significantly affected by increased defense and security spending since Russia's military campaign in Ukraine began in February 2022. Despite this, the budget is projected to collect 8.92 trillion roubles from oil and gas sales this year, with total budget revenues for 2026 estimated at 40.283 trillion roubles. The previous year saw a 24% drop in oil and gas budget revenues, reaching the lowest level since 2020.
