Russia expects 10% year-on-year increase in oil and gas tax revenues for October

Russia is projected to record a 10% year-on-year increase in tax revenues from oil and gas in October, reaching approximately 1 trillion rubles ($11.97 billion). These revenues are a vital component of the Russian federal budget, accounting for about 20% of total state income. The surge is primarily driven by quarterly payments of the additional tax on oil production profits.

Compared to September, total tax revenues from the energy sector are expected to more than double. Even excluding the specific quarterly profit tax, recurring revenues are estimated to exceed September levels by 164 billion rubles, representing a 36% increase. These calculations, performed by Reuters, are based on data regarding production volumes, refining capacity, and domestic and international supply contracts.

As the world's third-largest oil producer and exporter following the United States and Saudi Arabia, Russia remains heavily dependent on these energy sales. The government relies on these funds to finance its federal budget, making the performance of the energy sector a critical indicator of the nation's fiscal stability.