Russia’s Oil and Gas Revenue Falls to a Five-Year Low

(Moscow, Feb 16) Budget figures released by Russia’s Finance Ministry on Thursday show that Russia’s oil-and-gas revenue—widely seen as a key source of funding for its war-related spending in Ukraine—has fallen to its lowest level in five years.

According to AFP, Russia’s economy has been under strain as the fiscal burden of nearly four years of military operations mounts, while Western sanctions have fueled inflation and weighed on growth. Although government finances remain heavily reliant on energy sales, Russia’s energy infrastructure—including storage depots and refineries—has also been damaged by Ukrainian drone attacks.

Data showed that Russia’s oil-and-gas sales revenue totaled about 8.467 trillion rubles last year (around RM440.3 billion), the lowest since 2020, and 24% lower than in 2024.

Since Russia’s invasion of Ukraine in 2022, its energy sector has been hit by multiple U.S. and European sanctions. Lower-than-expected energy prices have added further pressure. AFP also reported that in late October, the U.S. expanded sanctions to include two of Russia’s major oil producers—Lukoil and Rosneft—as part of efforts to increase pressure on Moscow.

Despite this, Russia has continued to sell large volumes of oil and gas to China, India, and Turkey, using various channels to bypass parts of the Western restrictions.