Russia’s Oil-Tax Revenue Jumped by More Than 50% Last Month

Russia’s government revenue from oil-industry taxes in July surged 53% from a year earlier after prices for the country’s crude increased.
The levies brought in 1.05 trillion rubles last month, according to Bloomberg calculations based on Finance Ministry data. Total oil and gas revenue rose by a third to 1.08 trillion rubles.
Russia’s vast energy industry, which provides crucial funds for state coffers, has benefited from higher prices for Urals crude, the key export blend. The figures show its producers have adapted to international sanctions, including a European ban on Russian oil, by redirecting flows to other buyers and making use of a massive shadow fleet of tankers.
The ministry calculated July taxes based on a Urals price of $69.58 a barrel, up from $55.45 a year earlier. At the same time, Russia’s currency depreciated by almost 6% against the dollar, boosting inflows.
On a monthly basis, oil revenue swelled by almost 80%, according to Bloomberg calculations. That reflects the fact that one of Russia’s key oil levies — a profit-based tax — is paid four times a year, in March, April, July and October. 
Moscow has been selling crude above a $60 price cap imposed by the Group of Seven nations. While that’s buoyed proceeds, the tax take from the industry would have been even higher last month without state subsidies to refiners. They received 142.5 billion rubles from the budget to supply gasoline and diesel domestically, according to the Finance Ministry.
Budget revenue from the gas industry shrank by almost 80% in July from a year earlier as the state refunded producers for overpaid export duties in recent months. 
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