Rosstat reports that in the first quarter of 2025, net profit for these companies fell by nearly half. Within three months, Russian oil and gas firms, which account for 33% of the budget, generated ₽789.5B, down from ₽1.45T the previous year. Russian oil refineries’ profitability has nearly vanished, as oil product producers saw earnings fall to ₽4.5B (-95.7%). Overall, the raw materials sector, which constitutes 14% of Russian GDP and provides 50% of budget revenue, experienced a 38% decline in net profit: ₽1.1T versus ₽1.76T in the same quarter last year.
With declining oil prices, Russian oil companies have experienced a deterioration of their financial standding; a barrel of Russian Urals fetched $66 in January but fell to $59 by the end of March and remained at $59 at the end of May. Consequently, Russia’s oil export foreign exchange earnings have reached a 2.5-year low of $1.2B weekly.
Experts suggest that the intensifying Western sanctions on Russia’s shadow fleet and a reduced price ceiling on Russian oil from $60 to $45 per barrel indicate “challenging times” ahead for oil companies and signify “pain for (Russia’s) budget”.