According to the Financial Times (FT), Russia's energy export revenues fell by about a fifth last year compared to 2024. The newspaper cites the relatively low price of oil on the world market and US sanctions against Russian oil companies Rosneft and Lukoil as the reasons.
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The combination of a significant discount and low world prices has led to Russia's energy revenues decreasing by about 20% annually in 2025. According to the publication, this trend demonstrates the effect of sanctions imposed by the administration of US President Donald Trump, which are undermining Moscow's oil revenues.
The discount Russia offers on oil sales has risen to more than $24 a barrel, up from about $15 in the previous two years. Even if the financial pressure doesn’t change Putin’s war goals, it’s still significant.
“The budget deficit is certainly an important issue for Putin right now,” Janis Kluge, a Russia expert at the German Institute for International and Security Affairs , told the newspaper.
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According to the FT, oil has long accounted for a larger share of Russia's energy revenues than gas. This gap has been widened by the loss of the European gas market in 2022, meaning revenues are more vulnerable to oil price fluctuations.
If low oil prices and a strong ruble persist, Russia's budget deficit could reach about 3 trillion rubles by the end of the year. That's about 7.5% of the revenues Moscow expects to receive in 2026.
Sanctions have also reduced the share of energy revenues in the Russian Federation's overall budget from about 50% at its peak to about 24% – the lowest figure in at least a decade.
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Previously, “FACTS” reported that China suddenly stopped importing electricity from Russia.