Russia's oil and gas budget revenue drops sharply in April

MOSCOW, May 4 (Reuters) - Russia's federal budget revenues from oil and gas, the lifeblood of its economy, fell 64% in April from the year-earlier period and declined by 5.9% from March, the finance ministry said on Thursday, as a result of higher subsidies to oil refineries. Budget income from oil and gas sales reached 647.5 billion roubles ($8.3 billion) last month, compared to 688.2 billion in March and 1.798 trillion roubles in April 2022, it said. Subsidies from the budget to the refining companies from the oil reverse excise tax rose by 38 billion roubles to 79.3 billion roubles in April, while the same payments to oil refineries under the "damping mechanism" rose to 107.2 billion roubles from 96.7 billion roubles in March.

At the same time, profit-based tax revenues from oil producers fell last month to 185.4 billion roubles, from 220.6 billion roubles in March. The Russian finance ministry plans to halve subsidies to oil refiners from July 2023, and is aiming to cut payments from the budget under the damping mechanism by 30 billion roubles. Russia's mineral extraction tax (MET) and export duty revenues rose in April from March by 6.5%, or 36.4 billion roubles, and by 13.5%, or 6.8 billion roubles, respectively.

The budget for 2023 foresees a deficit of 2% of GDP. The finance ministry has budgeted for a 23% reduction in oil and gas revenues this year to 8.95 trillion roubles.
($1 = 78.3000 roubles)
(Reporting by Darya Korsunskaya; writing by Vladimir Soldatkin; editing by Alexander Smith)

@vsoldatkin;))

Reuters

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