THE AMERICA ONE NEWS
Aug 9, 2025  |  
0
 | Remer,MN
Sponsor:  QWIKET 
Sponsor:  QWIKET 
Sponsor:  QWIKET: Elevate your fantasy game! Interactive Sports Knowledge.
Sponsor:  QWIKET: Elevate your fantasy game! Interactive Sports Knowledge and Reasoning Support for Fantasy Sports and Betting Enthusiasts.
back  
topic
Olena Mukhina


Russia’s energy revenues crash by 19% as war devours civilian budget

With gas exports to Europe halved and oil profits plunging, the Kremlin raids its welfare fund while fueling the front.
Trump-Russia-Companies
Moscow, Russia. Illustrative photo. Credit: Maxim Shemetov/Reuters
Russia’s energy revenues crash by 19% as war devours civilian budget

The Kremlin’s financial foundation for war is cracking. According to Ukraine’s Foreign Intelligence Service, Russia’s federal budget revenues from oil and gas dropped by 19% in January–July 2025 compared to the same period in 2024, down to $69.2 billion

The fallout from falling energy revenues is already visible as the Russian government is being forced to slash social and other civilian spending, diverting funds to finance its war against Ukraine.

The drop in energy revenues underscores Russia’s growing vulnerability to external pressure, the agency emphasizes.

A double blow to the Kremlin

The average price for Urals crude fell by 18.4%, to $60.37 per barrel. At the same time, the ruble was artificially strengthened by 45%, from 113.71 to 81.25 per USD, undermining export earnings in foreign currency.

Gas exports to the EU plummeted by 50% to just 9.93 billion cubic meters, continuing Russia’s steady loss of energy foothold in Europe.

Ministry of Finance in panic

The Russian government has already revised its oil and gas income forecast for 2025, now expecting only $104.4 billion instead of the previous $137.3 billion, which is a 24% drop from earlier projections.

To partially offset the shortfall, the Kremlin is cutting fuel subsidies under the “fuel damper” mechanism and tapping into the National Welfare Fund.