Russia acknowledges falling oil and gas revenues and end of the era of super profits
The Russian government recognises the end of the period of excessive profits from the oil and gas sector. The Russian Ministry of Finance has stated that revenues from oil and gas exports will decline in both the medium and long term.
This was reported in Telegram by the Centre for Countering Disinformation at the National Security and Defence Council.
According to the Russian Ministry of Finance, in 2026 the share of oil and gas revenues in the federal budget will decrease to 23 per cent. Just a few years ago, it exceeded 50 per cent. The ministry predicts a further decline in this figure in the coming years
Officially, the reduction is explained by the depletion of fields with low production costs, avoiding direct mention of the war against Ukraine. At the same time, analysts emphasise that the key factors behind the decline were Russia's full-scale aggression and sanctions that restricted access to Western markets and financing.
According to expert estimates, in 2025, Russia was forced to sell oil at the margin of profitability or even at a loss. After the loss of European markets, India and China became the main buyers, receiving Russian oil at significant discounts. In a number of cases, the discount reached around 50 per cent of the world price.
Analysts point out that the Kremlin's refusal to end the war against Ukraine leads to a systemic undermining of the Russian economic model, which has been based on oil and gas exports for decades.
