Falling oil prices along with the strengthening of the Russian currency are all set to slash the oil and gas revenues of Russia by almost 50% in December 2025 as compared to exactly a year before, to the lowest level since August 2020, as per the calculations from Reuters.
Apparently, the revenues for the state from oil and gas are expected to reach $5.15 billion, which is equivalent to 410 billion Russian rubles, in December 2025, almost half of December 2024, and also the lowest ever in more than five years. The fact is that the last time Russia had this roughly level of oil and gas revenues was in August 2020, at $5.1 billion, or 405 billion rubles, when oil prices were dipping as the pandemic had crushed the demand.
In November 2025, oil and gas revenues of Russia were expected to have slipped by 35% as compared to a year before since the price of crude from Russia slipped and the local currency went on to get strengthened.
Oil and gas revenues of Russia go on to make up the single largest budget income item when it comes to the Russian Federation, which heavily depends on these revenues in terms of heavy spending on its war against Ukraine.
In addition to the lower international oil prices along with a stronger ruble, the widening discount of the flagship crude grade of Russia, Urals, has also hurt the Russian revenues in the recent weeks, following the U.S. sanctions on the top oil producers as well as exporters of Russia, Rosneft and Lukoil.
Notably, the Urals discount to Brent went on to widen to the highest level since May 2023 after the U.S. made the announcement on the sanctions at the end of October 2025.
It is worth noting that the total oil exports of Russia, including that of crude and petroleum products, saw a dip of almost 420,000 barrels per day – bpd in November 2025 to 6.9 million bpd, since the buyers evaluated the implications as well as the risks associated with the U.S. sanctions, remarked the International Energy Agency – IEA in its monthly report earlier in December 2025.
The drop in crude along with the fuel shipments in November 2025, paired with weaker oil prices and also a widening discount for Urals crude, has all led to a dip in the Russian oil revenues to $11 billion in November 2025, down by $3.6 billion from 2025, estimated the IEA.
