Russia’s export revenue from crude oil and petroleum products slumped by 14% in June compared to the same month last year, the International Energy Agency (IEA) said in its monthly report published on Friday.
The Kremlin received $13.57 billion from sales of crude and refined oil products last month, down by nearly 14% from a year earlier, according to the IEA’s estimates.
The report also showed that Russian crude oil production remained broadly flat at almost 9.2 million barrels per day (bpd) for each of June and May.
Russia’s crude loadings also remained stable at an average of about 4.68 million bpd in June, but exports of refined petroleum products declined by 110,000 bpd to 2.55 million bpd, per the IEA data.
“The deterioration in exports has persisted over most of 2024 and 2025 to date and raises questions about Russia’s ability to sustain its upstream production capacity,” the IEA said, as carried by Reuters.
Russia saw its revenues from oil and gas for the budget crash by 33.7% in June from a year earlier—to the lowest level since January 2023, amid weaker commodity prices and a stronger Russian ruble.
Despite the oil price spike for two weeks in June during the Israel-Iran conflict, oil and gas revenues for Russia continue to drop compared to last year.
Lower budget income from oil and gas is a problem for Russia’s war economy, in which spending on defense and military is now at its highest since the end of the Cold War.
The drop in oil prices, the tightening of Western sanctions, and the stronger Russian ruble have combined to weigh on oil revenues.
Every third ruble going into Russia’s budget comes from the oil and gas companies.
Meanwhile, Russia’s seaborne crude oil shipments barely budged in late June, holding near two-month lows despite a modest uptick from major ports, according to Bloomberg tracking data.
By Charles Kennedy for Oilprice.com
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