In the first half of 2025, leading oil companies in the Russian Federation reported a significant decline in financial performance. In particular, “Rosneft” recorded a sharp decrease in net profit by 68% – from 773 billion to 245 billion rubles, which is equivalent to approximately 3 billion US dollars. The company “Lukoil” also demonstrated a decline, earning 287 billion rubles in profit compared to 590 billion in the same period of the previous year. The profit of “Gazprom Neft” fell by more than half, to 150 billion rubles, while “Gazprom” reported a 17% decrease in net profit – to 322.8 billion rubles.
This is reported by Business • Media
Decline in Profits and Increase in Losses in the Oil and Gas Industry
The oil and gas sector, which accounts for about a quarter of all budget revenues in the Russian Federation and nearly one-fifth of the national GDP, has lost over 50% of its net profit. At the same time, 45% of companies in the sector ended the first half of the year with losses totaling nearly 750 billion rubles.
Impact of Drone Attacks and International Decisions
Additional blows to the energy sector were dealt by Ukrainian drones. The largest oil terminal in the Russian Federation on the Baltic Sea – Ust-Luga – will operate at only half capacity during September due to damage to pipeline infrastructure. Significant damage was also sustained by “Novatek” facilities for the fractionation and transshipment of gas condensate. Preliminary estimates suggest that repairs may take up to six months.
For the fifth time, an oil refinery in the Russian Federation – Kuibyshevsky – was forced to halt processing after an attack on August 28. Attacks continue: on August 30, Ukrainian defenders struck the Krasnodar and Syzran refineries, and the day before, a pumping station for oil products in the Bryansk region. Analysts estimate that Ukraine has already targeted nearly all key oil refineries in the Russian Federation within a distance of up to 1,000 km.
“The White House stated that Ukraine has incapacitated 20% of the oil refining capacities of Russia. This could provoke a gasoline crisis, push inflation, and undermine the macroeconomic stability of the country.”
The Russian government acknowledged that the pace of economic growth has decreased elevenfold over the past six months.
China, which was one of Russia’s key partners, has now refused to participate in the new “Power of Siberia 2” gas pipeline project. Beijing proposed to expand the existing “Power of Siberia 1” pipeline by 6 billion cubic meters per year (to 44 billion cubic meters), starting in 2031. This does not solve Russia’s problem of finding new gas markets after losing European consumers, but it will allow “Gazprom” to earn an additional approximately 1.5 billion dollars annually.