Sanctions lead to a drop in Russia's oil and gas revenues

The Russian Ministry of Finance has confirmed that the country's oil and gas revenues have fallen significantly due to falling oil prices and tougher international sanctions. In October, the budget received 322 billion rubles (approximately $4 billion) less than planned. Expenditures on mineral extraction have fallen, indicating a deterioration in the economic situation.

Source RBC

The rate of decline in revenues has increased, and while the reduction was 14% since the beginning of the year, it reached 21% in October. Large companies such as Rosneft and Lukoil, which accounted for half of oil exports, were affected by the sanctions. As a result, the Russian government plans to compensate for the shortfall by raising taxes, including VAT to 22%, and increasing debt obligations.

These measures are expected to support the economy amid a growing budget deficit. Russia's economic outlook appears uncertain as international politics and sanctions continue to weigh on its commodity sector.