The federal budget of the Russian Federation has missed out on approximately $17 billion from the oil and gas sector over the past seven months this year, which is a 19% decrease compared to the same period last year. Total revenues during this time amounted to $69.2 billion. The main factors behind this decline were a significant drop in global oil prices, the strengthening of the ruble, and a sharp reduction in gas exports to the European Union.
This is reported by Finway
India refuses Russian oil
The two largest Indian state-owned oil refining companies — Indian Oil Corp (IOC) and Bharat Petroleum (BPCL) — have intensified their procurement of non-Russian oil on the spot market following the introduction of additional tariffs by the United States. In September and October, they have already contracted at least 22 million barrels of alternative crude, whereas previously they mainly purchased Russian oil at reduced prices since 2022. This shift by India has significantly impacted Russia’s position in the global energy market.
Russia seeks new buyers, while Canada lowers the price ceiling
In response to the loss of traditional markets, Russia is offering oil to its new partners, particularly Chinese refineries, at significantly reduced prices. The Chinese Ministry of Foreign Affairs emphasized that the country
“has the legitimate right to engage in normal economic, trade, and energy cooperation with Russia.”
Meanwhile, Canada, following the example of the European Union and the United Kingdom, is also increasing economic pressure by lowering the price cap on Russian oil from $60 to $47.6 per barrel. This decision, along with actions from other Western countries, further complicates Russia’s export opportunities.
Global oil prices demonstrated a decline of 4-5% last week due to concerns over reduced demand caused by U.S. tariff policies. On Friday, Brent crude was priced at $66.40 per barrel. Experts estimate that Russia is preparing for an even greater price drop — to $40 per barrel — due to oversupply, slowing economic growth in China, and increased production by OPEC+ countries.