According to Reuters article published on April 5, 2023, Russia's federal budget revenues from oil and gas, the lifeblood of the country's economy, fell 43% year on year in March, while a quarterly profit-based tax was all that held revenues back from a monthly drop, the finance ministry said on Wednesday.
Moscow relies on energy revenue, last year around 11.6 trillion roubles ($146 billion), to fund government spending, and has been forced to sell foreign reserves to cover a deficit stretched by the cost of its military operation in Ukraine.
Budget income from oil and gas sales reached 688.2 billion roubles ($8.67 billion) last month, compared to 521.2 billion in February and 1.21 trillion roubles in March 2022, according to finance ministry estimates.
March revenues increased thanks to a 220.6 billion roubles in quarterly payments for a profit-based tax on hydrocarbon extraction.
The mineral extraction tax (MET) on oil was 63.6 billion roubles lower than in February, while the MET on natural gas, was 12.9 billion roubles lower.
Tax and customs revenue from energy sales has been gradually recovering since January, when it hit its lowest level since August 2020 under the impact of Western sanctions on Russia's exports over the conflict in Ukraine.
Russia's budget for 2023 foresees a deficit of 2% of GDP. The finance ministry has budgeted for a 23% reduction in oil and gas revenues this year to 8.95 trillion roubles.
The ministry on Monday gave a notional price of $47.85 a barrel for Russian Urals crude oil in March, lower than February's $49.56 and well down on the March 2022 price of $88.95.
Total 2022 energy revenues of 11.6 trillion roubles jumped by 27.9% compared to 9.1 trillion roubles in 2021, by interim dividends and a one-off tax payment by gas giant Gazprom (GAZP.MM).
($1 = 79.4000 roubles)
