Russia's era of superprofits from oil and gas sector ends — CCD

According to Ukrinform, this was reported on Telegram by the Center for Countering Disinformation at the National Security and Defense Council.

"The Russian Ministry of Finance has stated that oil and gas revenues will decline in both the medium and long term. According to the Russian Ministry of Finance's estimates, this year the share of oil and gas revenues in the budget, which a few years ago was 50%, will drop to 23% and will continue to fall in the coming years," the statement said.

As noted, this is officially attributed to the depletion of low-cost hydrocarbon reserves, thereby avoiding the topic of the war in Ukraine. However, it is the war and sanctions that have hit oil and gas revenues the hardest.

Analysts note that this year, Russia was forced to trade oil at the break-even point or even at a loss. Having lost Western markets due to the war, Russia is forced to sell oil to India and China at massive discounts, often amounting to about 50% of the price.

As reported by Ukrinform, the Russian authorities are trying to close budget gaps by imposing penalties and fines on the population and enterprises. The amount of penalties and fines for taxes has reached a record 3.26 trillion rubles (approximately $41.3 billion).

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