Russia's revenues from oil and gas, which represent the main support for the state treasury, declined by 46.4 percent in February, on an annual basis, despite an increase of 22.5 percent compared to the previous month, according to what was announced by the Russian Ministry of Finance.
Tax and customs revenue from oil and gas sales in January fell to the lowest level since August 2020.
Moscow relies on energy revenues, which last year amounted to about 11.6 trillion rubles ($154 billion) to finance government spending, and was forced to sell foreign reserves to cover a deficit that increased as a result of its military operation in Ukraine.
Revenue from oil and gas sales contributed to the budget by 521.2 billion rubles last month, compared with 425.5 billion in January and 971.7 billion in February 2022.
The Russian Ministry of Finance said on Wednesday that it set the reference price for Urals crude at $49.56 a barrel last February, which is slightly more than the $49.48 a barrel it set in January. But it is well below the price I set in February 2022 at $77.16.
Russia's budget deficit is expected this year to reach 2 percent of gross domestic product, and any additional deficit would require Russia to increase its sales in foreign currencies, reduce spending, expand borrowing or impose more taxes.
