Russia's March oil and gas revenues expected to fall 52% year-on-year

March 17 (Reuters) - Russia's federal budget proceeds from taxes on oil and gas are expected to drop by 52% in March to 520 billion roubles ($6.4 billion) from the same month in 2025 due to weaker oil prices and a stronger rouble, Reuters calculations showed on Tuesday.

The rise in international oil prices resulting from the U.S.-Israeli war on Iran and the effective closure of the Strait of Hormuz is yet to be felt for Russia as current budget revenues are calculated based on the previous month. Global oil prices are up around 40% since the start of the conflict on February 28.

Oil and gas revenue accounts for around a quarter of Russia's federal budget proceeds and are critical to funding Moscow's military campaign in Ukraine.

Russia's oil and gas revenues over the January-to-March period are expected to total 1.34 trillion roubles, down from 2.64 trillion roubles in the first three months of 2025.

Reuters calculations are based on oil and gas production data, refining, and supplies on domestic and international markets.

The finance ministry will publish its data on the budget's oil and gas revenues on April 3.

The federal budget assumes the collection of 8.918 trillion roubles from oil and gas sales this year. Total budget revenues for 2026 are seen at 40.283 trillion roubles.

Last year, Russia's federal budget revenues from oil and gas dropped 24% to 8.48 trillion roubles, the lowest level since 2020.