Falling oil prices reduce Russia’s budget revenues

Abstract

World market prices for crude oil have dropped dramatically in recent weeks in response to demand uncertainty caused by US tariff policies and OPEC’s decision to increase global supplies. Benchmark Brent crude oil futures predict that the oil price will average around $64‒65 a barrel to the end of 2026. Russia’s government finances are very sensitive to changes in global oil prices. Last year, oil & gas earnings accounted for about 30 % of total federal revenues and 16 % of consolidated government revenues.