Russia's oil and gas revenues will rise in May, but will be lower than last year's
Russia's revenue from energy exports in May 2026 will show an increase compared to the same period last year due to a surge in global oil prices. The main factor behind the rise in fuel prices was the military conflict in Iran and the blockade of the Strait of Hormuz.
This is reported by Reuters.
According to forecasts, oil and gas tax revenues to the aggressor’s budget in May will reach about 650 billion rubles, compared to 512.7 billion rubles in May 2025. However, based on the results of the first five months of the year, total revenue will be lower than last year’s figures—2.94 trillion rubles compared to 3.16 trillion rubles in 2025. This is due to low oil prices at the beginning of the year and the strengthening of the Russian currency, which negatively impacted export revenue.
Russia’s economic gains from instability in the Middle East are significantly limited by Ukrainian drone attacks on energy infrastructure, which are forcing the aggressor to cut production. Russian economists warn that despite the temporary growth in May, 2026 will generally be a financially challenging year for the country due to restrictions on windfall profits and increasing technical difficulties in the industry. The effectiveness of Ukrainian strikes remains a key factor in limiting the enemy’s military budget.
Despite a temporary increase in oil export revenues, Russia’s economy continues to accumulate serious imbalances due to the war and high military spending. The budget deficit is growing rapidly, inflation is accelerating, and reserves are gradually being depleted. Analysts point out that oil revenues are only temporarily masking deeper problems.
Russian authorities are planning massive layoffs of public sector employees amid a sharp rise in the government budget deficit. As of April 1, the number of employees recommended for dismissal reached 105,147. These figures are provided by Rostrud.
