Russia’s Oil and Gas Revenues Plunge 50% Amid War Costs
Russian federal budget revenues from oil and gas have experienced a dramatic 50% decline in January 2026, reaching their lowest point since July 2020 and representing a record low as a percentage of GDP during Putin’s presidency. This significant revenue drop, attributed to falling oil prices and substantial discounts due to sanctions, is exacerbating a budget shortfall. The situation is further compounded by anticipated reductions in oil shipments to India and a potential increase in the 2026 deficit, prompting major producers like Lukoil to seek government support.
John Q. Hosedrinker