In July, Russia’s revenues from oil and gas sales soared by 45%

Russia reports sharp increase in oil and gas revenues in July.

According to Kommersant, Russia’s oil and gas revenues surged in July, rising by 45% compared to June and by 33% compared to July 2023.

The report states, “The oil and gas revenues of the federal budget in July amounted to 1.1 trillion rubles, increasing by a third year-over-year and by 45% month-over-month compared to June of this year.”

The growth in revenues is attributed to higher oil prices and the collection of the additional income tax, which oil companies pay four times a year.

However, the Russian Ministry of Finance had anticipated even higher revenue volumes, leading to a reduction in the amount of foreign currency purchased for reserves to its lowest levels since January this year — 1.1 billion rubles per day.

Overall, in the first seven months of 2024, oil and gas revenues totaled 6.777 trillion rubles (75.3 billion USD), marking a 62% increase compared to the previous year.

Recently, The Financial Times reported that despite sanctions and the ongoing conflict, Russia is experiencing a consumer boom. Real wages in the country have risen by nearly 14%, and the consumption of goods and services has increased by approximately 25%.

In June, Western media reported that Russia is boosting its oil revenues through increased shipping activities. Its shadow tanker fleet has doubled in size.