US Treasury Department: Russia’s oil revenues have fallen significantly

The Ministry has published the progress report on the success of the ceiling price application for Russian oil.

The report noted that after the implementation of the price cap policy, Russia’s oil revenues dropped significantly compared to both pre-war and early-war highs.

In the report, which stated that the oil revenues of the Russian government in the January-March period decreased by 40 percent compared to last year, it was stated that the sum of oil revenues before the war constituted 30-35 percent of Russia’s budget.

In the report, it was noted that oil revenues decreased to 23 percent of Russia’s budget in 2023.

Russia’s oil revenue has fallen despite the country’s increase in oil exports by 5 to 10 percent in April compared to March 2022, the U.S. Treasury Department’s report said.

Despite the initial skepticism about the price ceiling, market participants and geopolitical analysts agreed that the price ceiling met Russia’s goals of reducing oil revenue and stabilizing the global energy market, the report said.

G7 member states and European Union countries agreed last year to apply a ceiling price of $60 per barrel to oil transported by sea from Russia.

Russia, on the other hand, banned the sale of oil and petroleum products to those who participated in the ceiling price application for Russian oil, with a decree signed by President Vladimir Putin.