Russia’s vital oil and gas revenues tumbled 27% in October from a year earlier, data from the Finance Ministry show — a sharp blow to the Kremlin’s wartime finances just as new US sanctions tighten the screws on its energy exports.Moscow collected 888.6 billion rubles, or $10.9 billion, in oil and gas taxes, down from about 1.2 trillion rubles in October 2024, official data published on Thursday show. The steep decline came amid weak crude prices, a stronger ruble, and tightening Western sanctions over Russia’s invasion of Ukraine.

Over the first 10 months of 2025, oil and gas revenues totaled 7.5 trillion rubles, down from 9.5 trillion in the same period last year — a drop of more than 2 trillion rubles, or 21%.

That pressure is set to intensify. In late October, the US Treasury Department sanctioned the financial arms of Rosneft and Lukoil, Russia’s largest oil companies, which together account for around 3 million barrels per day — nearly half of the country’s seaborne oil exports.

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“The impact is likely to fall more on pricing than availability, with Russia having to offer wider discounts to compensate buyers for higher legal and logistical risk,” wrote Bridget Payne, the head of energy forecasting at Oxford Economics, in a late October report.

Payne said the added insurance and financing costs amount to a sanctions premium on Russian crude. That premium, she added, will widen its discount to international grades and eat into Moscow’s net revenue.

Russia’s economy grew 0.6% year-on-year in the third quarter, according to the Economic Development Ministry last week. The economy was down from 1.1% in the second quarter and 1.4% in the first quarter, a sharp slowdown after the wartime boom fueled by massive defense spending and government subsidies.

Slava Ukraine!