Russia’s budget surplus more than quadrupled in November, marking another month of significant growth in fossil fuel revenues, according to the latest Finance Ministry report.
Data released on Monday showed the surplus reached 557 billion rubles ($9 billion) in the first 11 months of the year. This is an increase from the 128.4 billion rubles (over $2 billion) reported for January-October.
The report said oil and gas revenues grew, already exceeding the annual target in the first 11 months. The budget received more than 10 trillion rubles (about $160 billion) in revenue from energy exports, up 111.7% for the year.
According to estimates by the International Energy Agency (IEA), oil and gas revenues accounted for almost half of Russia’s federal budget in 2021.
Analysts attributed the budget surplus to dividends and a windfall tax paid by energy giant Gazprom. The temporary windfall payments were set by the government after Russian oil and gas companies reported record profits this year, despite Western sanctions.
Russia targets extra profits from energy companies
Under the law, which was signed by President Vladimir Putin in November, the country’s energy exporters will have to pay increased taxes on excess profits through 2025. The tax changes are expected to add another $50 billion to state coffers over the next two years. .
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