The budget deficit of Russia is growing due to falling oil revenues.

The federal budget deficit of Russia increased in April

In the last month, the budget deficit of the Russian Federation amounted to 1.05 trillion rubles, after a surplus in the previous month. This was the result of a 12% decrease in oil and gas revenues compared to the previous year.

This category of revenues is expected to 'significantly' exceed annual targets. - Ministry of Finance.

The total budget deficit for the first four months of 2025 reached nearly 3.2 trillion rubles, three times higher than in the same period last year.

Russia has a significant dependence on revenues from energy sales, which account for 30% of its state budget. The growing deficit is leading to serious financial difficulties, including increased spending on defense needs and instability in the oil market.

Situation in the oil market: risks and outlook

The Ministry of Finance warns of 'significant risks' for oil revenues due to deteriorating prospects for energy export earnings. The government is revising the country's budget rule as oil prices remain low, posing a threat to financial stability.

With Urals oil trading below the threshold level in recent months, the government used funds from the National Welfare Fund in March to cover the gap.

The situation in the oil market in Russia remains tense, which indeed concerns the authorities about the future sustainability of fiscal reserves.

In recent months, Russia has faced challenges in budget planning due to declining revenues from oil and gas extraction. While there are some positive trends in non-oil revenues, the threat to the country's financial stability remains high due to instability in the oil markets.