U.S. President Donald Trump stated that a further decline in oil prices could be a decisive factor in ending Russia’s war against Ukraine.
This is reported by Business • Media
“OPEC and OPEC+ are increasing production. But Putin will stop killing people if energy prices drop another $10 per barrel. He will have no choice because his economy is in bad shape”
The Oil Market Situation and Its Impact on Budgets
As of August 5, 2025, Brent crude oil futures were trading below $68 per barrel. The decline in global oil prices, along with the strengthening of the ruble, led to a significant drop in tax revenues to the budget of the Russian Federation from the oil sector in July. It is estimated that these revenues amounted to approximately ₽710.4 billion ($8.9 billion), which is nearly 33% less than in July of last year. Total revenues from oil and gas decreased by 27% to ₽787.3 billion ($9.82 billion).
At the same time, compared to June 2025, tax revenues increased by 71%, as one of the main oil taxes is paid quarterly. It is worth noting that the oil and gas sector provides about one-third of the Russian budget, making it a key source of funding for government expenditures.
Oil Trading Under Sanctions and New Export Operations
Despite international sanctions, the Indian oil company Nayara Energy, partially controlled by Rosneft, recently conducted its first gasoline export since the imposition of EU restrictions. To transport approximately 43,000 tons of gasoline, the company used a tanker that is under sanctions. This move demonstrates the efforts of Russian oil players to maintain export flows amid strict restrictions.