Oil and gas income to the Russian budget fell by almost a third in January

In the first month of 2016, the Russian budget received almost by 30% less of oil and gas revenues than a year ago, the Ministry of Finance reports. In January, Urals oil cost less than $30, and the budget for this year needed at least $40.

Because of the very low oil prices at the beginning of the year, in January, the oil and gas revenues of the Russian budget fell by almost a third as compared to January 2015, and export duties on hydrocarbons brought the Treasury less than half (49%) from the rate of the previous year, the Finance Ministry informed in the operative report of the budget performance.

In January, the oil and gas revenues amounted to 371.1 billion rubles, which is by 8% more than the cash plan (344.4 billion rubles), the Ministry of Finance’s reported, submitted to the State Duma, informs. At the same time, the received amount is by 29% less than the oil and gas revenues in January 2015, the report noted. The tax maneuver (increase in tax rates for crude oil and gas condensate) contributed to a significant increase in the budget revenues from the tax on mineral extraction (MET) – it grew by 21.5% as compared with January 2015. But the increased income from the MET couldn’t compensate for the loss from the decreased export prices for Urals crude oil: in January 2016, the revenues from the export duties on oil and gas amounted to only 49% from the year-ago earnings.