Russian Energy Revenues Fall Short Amid War Market Stabilization

Russia's energy revenues have fallen short of expectations due to several factors. During the first seven months of this year, the federal budget collected 4.6 trillion rubles ($55.2 billion) in oil and gas taxes, which is only an extra 127.6 billion rubles ($1.52 billion) over original budget projections.

The expected windfall from the US-Israeli war against Iran also failed to materialize as global energy markets stabilized faster than predicted. Iran's initial closure of the Strait of Hormuz did boost the appeal of Russian crude, pushing the price of Urals blend from $56.60 a barrel in February up to $94.50 in March and $112.30 in April.

However, energy suppliers found workarounds to route cargoes through the Strait of Hormuz despite the effective closure, while alternative transit networks helped stabilize supply lines. China also slashed its imports of crude oil and drew from its huge stockpiles, removing pressure from global markets.