War With Iran Boosts Russia’s Oil Revenues, Reuters Reports

Russia’s revenues from its main oil tax are expected to double to around $9bn in April, driven by the energy crisis triggered by US and Israeli attacks on Iran.

The conflict has pushed oil prices sharply higher after Iran effectively closed the Strait of Hormuz, a key route through which roughly one fifth of global oil and liquefied gas supplies pass. Brent crude has climbed above $100 per barrel.

According to Reuters calculations, Russia’s oil production tax is expected to reach around 700bn roubles in April, a significant increase compared with both March and the same period last year. The average price of Russia’s Urals crude rose to $77 per barrel in March, its highest level since October 2023.

Demand for Russian energy exports is also increasing. The Kremlin said it had received a surge in supply requests.

Despite the windfall, Russia continues to face economic pressures. The country reported a budget deficit in the first quarter, while its energy infrastructure has come under attack. Future revenues will depend on how long the crisis persists.

(reuters, bak)