Profits of Russian companies engaged in oil and gas extraction sharply declined in the first quarter of 2025. According to Rosstat, the net profit in this sector fell by nearly 50%, amounting to only ₽789.5 billion compared to ₽1.45 trillion in the same period last year. The oil and gas sector, which accounts for about a third of the Russian Federation’s budget, is currently under significant pressure.
This is reported by Finway
Profitability of Russian Refineries Reached Critically Low Levels
Refineries in Russia demonstrated an especially sharp decline: in the first quarter, their profit amounted to only ₽4.5 billion, which is 95.7% less than a year ago. The profitability of enterprises in the sector has nearly vanished. Overall, the raw materials industry, which provides 14% of GDP and half of the budget revenues of the Russian Federation, lost 38% of its profits in three months – the figure dropped to ₽1.1 trillion from ₽1.76 trillion last year.
Decline in Oil Prices and Currency Revenues
The decrease in global oil prices has only intensified the financial pressure on Russian companies. If in January a barrel of Urals was exported for $66, by the end of March its price had dropped to $59, and by the end of May – to $52. As a result, currency earnings from oil exports fell to the lowest level in the last 2.5 years – only $1.2 billion per week.
According to Russian experts, the tightening of Western sanctions against the “shadow fleet” of the Russian Federation and the reduction of the “price ceiling” on Russian oil from $60 to $45 per barrel promises “difficult times” for oil companies and “pain for the budget.”
The current situation indicates a further escalation of financial difficulties in a key sector of the Russian economy amid the impact of Western restrictions and falling energy prices.