Russia's Oil Revenues Plummet Amid Drone Strikes and Low Crude Prices
Russia's oil and gas revenues have plummeted to their lowest level since January, according to data from Russia's Finance Ministry. In August, the Russian budget received 424 billion rubles in oil and gas taxes, a 16% decrease from August 2025 and 43% below the average for March-July.
The decline was largely due to decreased oil production in Russia, which fell by 410,000 barrels per day since the beginning of the year. Additionally, the average price of Russian Urals crude dropped to $59.02 per barrel in August, compared to $86 in June and $94 in May.
The consequences of drone strikes on Russian oil refineries have also added to the burden. At least seven plants halted production in August, with a record 21 strikes carried out against oil-refining facilities throughout the month. As a result, Russia's budget paid oil companies 304.6 billion rubles in subsidies in August.