INSUBCONTINENT EXCLUSIVE:
Russia's budget revenues from oil and gas fell 17% year-over-year to 1.08 trillion rubles ($12.8 billion) in March, the Finance Ministry
its total revenue, compared to March 2024.Forced discounts on Russian oil, exacerbated by tougher U.S
sanctions and a sharp appreciation of the ruble, have significantly dented the country's budget revenues from raw materials.For the second
consecutive month, the Finance Ministry recorded a nearly 20% decline in raw material rents
This is a noticeable loss that will have to be covered either by additional borrowing or by drawing from the National Wealth Fund, which has
Oil prices and the ruble exchange rate are emerging as key challenges for the government: a barrel of Urals crude is trading below $60, well
under the $70 price assumed in the budget
Meanwhile, the ruble's exchange rate against the dollar has risen to 84 rubles compared to the government's forecast of 96.5.As a result,
banker and professor at the Higher School of Economics
The currency is currently overvalued by 20%, and Donets expects it to weaken to 100-105 rubles per dollar by year-end.Meanwhile, the
government has fewer reserves to offset declining revenues
The National Wealth Fund, built up over years through excess oil profits, has lost two-thirds of its liquid assets since the invasion of
choice but to slash expenditures to maintain fiscal stability.
