Russia's oil and gas revenue declined by 35% in May to 512.7 billion roubles ($6.55 billion) from the same month a year ago, finance ministry data showed on Wednesday, which would likely make Russia more resistant to further OPEC+ oil output hikes.
Revenue also fell by 53% from April as global oil prices declined, while the rouble strengthened. Reuters expected the revenue at 520 billion roubles.
Oil and gas revenue has been the most important source of cash for the Kremlin, accounting for about a quarter to half of total federal budget proceeds over the past decade.
On Saturday, eight key OPEC+ members agreed to raise production by 411,000 barrels per day from July, after agreeing the same-sized increases in output in May and June. The group is unwinding voluntary cuts put in place over the past 5 years to support the market.
However, Saudi Arabia and Russia had to reach a difficult compromise on OPEC+ policies as Riyadh pushed to accelerate oil output increases while Moscow argued for a pause, four OPEC+ sources with knowledge of the talks said.
Oil price decline has been painful for Russia, which had ran a budget deficit of 3.2 trillion roubles, or 1.5% of gross domestic product, in the first four months of the year.
Russia's finance ministry has also raised the 2025 budget deficit estimate to 1.7% of gross domestic product (GDP) from 0.5%, after reducing the energy revenues forecast by 24% due to expectations of a prolonged period of low oil prices.
Budget proceeds from oil and gas sales fell by 14.4% in January - May from the same period a year ago to 4.24 trillion roubles, finance ministry's data showed on Wednesday.-Reuters