Russia’s federal budget revenue from oil and gas fell 24% in 2025, reaching its lowest level since 2020, as oil prices fell and the Russian ruble appreciated, according to data from the Russian Finance Ministry, Reuters reports.

Oil and gas revenues are the Kremlin’s main source of cash, accounting for a quarter of federal budget revenues, which have been hit by massive defense and security spending since Russia began its military campaign in Ukraine in February 2022, according to Agerpres.

The Russian Finance Ministry reported that oil and gas revenues fell to 8.48 trillion rubles ($108.03 billion) last year, from 11.13 trillion rubles in 2024. Last year, oil prices fell by more than 18% – the steepest annual decline in 2020 – amid growing concerns about oversupply.

Oil and gas revenues were also lower than the 8.65 trillion rubles the Finance Ministry had projected in its revised downward estimates, from an initial forecast of 10.94 trillion rubles for 2025.

The last time Russia’s revenues from oil and gas sales reached such levels was in 2020, when, amid the COVID-19 pandemic and the collapse of the oil market, they fell to 5.24 trillion rubles.

Ukraine and its Western backers have repeatedly said they want to cut off Russia’s oil revenues in order to force the world’s second-largest oil exporter to end the war in Ukraine.

In December 2025, Russia’s oil and gas revenues fell to 447.8 billion rubles, down from 790.2 billion rubles in the same month in 2024 and 530.9 billion rubles in November 2025.