Apr 04, 2025 (Baystreet.ca via COMTEX) --
Russian revenues from oil and gas plunged by 17% in March from a year earlier, according to data from Russia's finance ministry.
Oil and gas revenues for the Kremlin fell to $13.1 billion (1.1 trillion Russian rubles) last month, while revenues for the first quarter dipped by nearly 10% on the year to $31.4 billion (2.64 trillion rubles), the official Russian data showed.
Much of the decline was likely attributable to the lower oil prices in February and March, as well as the initial chaos with Russian oil trade after the U.S. sanctions from early January--the most aggressive sanctions on Russian oil yet.
Proceeds from oil and gas sales are the most important cash stream for Russia's federal budget.
Going forward, Russia's revenues from oil are set to be volatile due to heightened geopolitical uncertainty.
The impasse in the U.S.-brokered talks on ending the war in Ukraine adds uncertainty for Russia's ability to sell its oil should U.S. President Donald Trump becomes more "pissed off" at Putin.
This weekend, President Trump threatened secondary sanctions on Russia's energy industry if Washington and Moscow fail to seal a ceasefire deal for Ukraine.
Meanwhile, a bipartisan group of 50 U.S. Senators has prepared a plan to slap a 500% tariff on imported goods from countries that buy Russian oil, gas, and uranium if Russia refuses to engage in good-faith negotiations for a lasting peace with Ukraine.
The hard-hitting sanctions on Russia "are at the ready and will receive overwhelming bipartisan, bicameral support if presented to the Senate and House for a vote," the Senators said earlier this week.
"We share President Trump's frustration with Russia when it comes to obtaining a ceasefire, and support President Trump's desire to achieve a lasting, just and honorable peace," they added.
Russia signaled on Tuesday that it cannot accept the U.S. plan to end the war in Ukraine in the "current form."
By Charles Kennedy for Oilprice.com
COMTEX_464225013/2559/2025-04-04T07:12:32
