According to official statistics, in the first quarter of 2025, the total net profit of oil and gas companies in the Russian Federation decreased by almost half. During this period, energy sector enterprises, which account for 33% of the country’s budget, earned only 789.5 billion rubles, while a year ago this figure reached 1.45 trillion rubles.
This is reported by Бізнес • Медіа
Sharp Decline in Profitability and Decrease in Export Revenues
The profitability of Russian oil refineries continues to decline and is approaching zero levels. Over three months, fuel producers made a profit of 4.5 billion rubles, which is 95.7% less than in the same period last year. Overall, the raw materials industry in Russia, which contributes about 14% of GDP and half of the state budget revenues, lost 38% of its net profit: 1.1 trillion rubles compared to 1.76 trillion in the first quarter of 2024.
The financial situation of Russian oil companies is deteriorating due to the ongoing decline in oil prices. In January 2025, a barrel of Russian Urals oil was exported at $66, by the end of March the price dropped to $59, and by the end of May it fell to $52. This led to a decrease in foreign currency earnings from oil exports to Russia’s lowest levels in the last two and a half years—$1.2 billion per week.
Influencing Factors: Sanctions and Stricter Price Caps
According to Russian experts, the tightening of Western sanctions against Russia’s “shadow fleet” and the reduction of the “price ceiling” on Russian oil from $60 to $45 per barrel promise “difficult times” for oil companies and “pain for the budget.”
The tightening of sanctions, particularly against the so-called “shadow fleet,” as well as the reduction of the price cap on Russian oil, significantly complicate the operations of Russian oil and gas companies. This creates additional pressure on the country’s budget revenues and worsens the overall economic situation in the energy sector.