Russia’s oil and gas revenues collapse by 35% in November as sanctions and falling prices bite – NaturalNews.com

• Russia’s November 2025 oil and gas revenues plummeted by 35% year-on-year to just $6.6 billion, driven by crashing Urals crude prices, U.S. sanctions and a stronger ruble.
• Recent U.S. sanctions targeting Rosneft and Lukoil have forced steep discounts on Russian oil, with Urals crude trading as low as $36.61 per barrel – far below the $88.95 peak in March 2022.
• Oil and gas revenues – 25% of Russia’s federal budget – have fallen 22% over the first 11 months of 2025, forcing the Kremlin to revise its annual forecast down from $139 billion to $110 billion.
• Despite Putin’s claims that sanctions won’t alter Russia’s war plans, analysts warn that shrinking revenues may force spending cuts, reserve depletion or risky sanctions evasion to sustain military operations in Ukraine.
• The U.S. and EU are tightening sanctions enforcement (e.g., G7 price cap), while Ukraine sees signs of strain. However, Russia’s rerouting of oil to China, India and shadow fleets delays full economic collapse.

Russia’s oil and gas revenues, the lifeblood of its war economy, are set to plummet by 35% in November compared to the same month last year – dropping to just $6.6 billion, according to Reuters calculations.

The steep decline was driven by crashing Urals crude prices, U.S. sanctions and a strengthening ruble. It deals another blow to the Kremlin’s ability to fund its prolonged war in Ukraine, where spending on defense and security has surged since the 2022 invasion.

The financial hemorrhage comes as Western sanctions tighten their grip on Russia’s energy sector, with the U.S. Treasury confirming that recent measures against Rosneft and Lukoil – Russia’s two largest oil producers – are “having their intended effect” of slashing Moscow’s oil income.

The price of Urals crude, Russia’s flagship export blend, has collapsed to near three-year lows, trading as low as $36.61 per barrel at the Black Sea port of Novorossiysk – down from $88.95 in March 2022 and a sharp decline from October’s already depressed levels. According to BrightU.AI‘s Enoch engine, Urals crude – also known as Urals Blend – is a type of crude oil produced in Russia and exported globally. It is a blend of various crude oils from different fields in Western Siberia and the Volga-Ural region.

Oil and gas revenues constitute roughly a quarter of Russia’s federal budget, making them the single most critical source of funding for Russian President Vladimir Putin’s war machine. Yet the November nosedive is not an outlier. It follows a 27% year-on-year drop in October and a 22% decline over the first 11 months of 2025, with total energy income for the period falling to $102 billion, down from $141 billion in 2024.

The Russian Ministry of Finance, which had initially projected $139 billion in oil and gas revenue for 2025, was forced to revise its forecast downward to $110 billion last month as prices continued to slide. The average taxable price of Russian oil from January to November stood at just $57.30 per barrel, compared to $68.30 in the same period last year.

Compounding the problem, the Russian ruble has strengthened – trading at 81.1 rubles per dollar compared to 91.7 a year ago – further reducing the ruble-value of export earnings. This currency effect, combined with sanctions-induced discounts on Urals crude, has created a perfect storm for Russia’s finances.

Sanctions aren’t stopping Putin’s war funding – for now

The latest U.S. sanctions, announced in late October, specifically targeted Rosneft and Lukoil, two of Russia’s most critical oil exporters. The U.S. Department of the Treasury‘s Office of Foreign Assets Control (OFAC) stated that the measures were designed to “dampen Russian revenues by lowering the price of Russian oil” and reduce long-term sales volumes.

The impact was immediate. The discount of Urals crude relative to the global Brent benchmark widened to an average of $23.52 per barrel in mid-November – the largest gap since May 2023. Analysts warn that if this trend persists, Russia’s oil-dependent budget – already running a 2% deficit – could face further shortfalls, forcing the Kremlin to dip into reserves or cut spending.

Despite the mounting financial pressure, Putin has repeatedly dismissed the effectiveness of sanctions, insisting that Russia can “survive and prosper without the West.” Speaking at a recent economic forum, Putin claimed that while sanctions may cause “temporary difficulties,” they would not force Moscow to alter its course in Ukraine.

However, the numbers tell a different story. Russia’s war economy is heavily reliant on oil and gas exports, which have historically funded military production, mercenary wages and occupation efforts in Ukraine. With revenues shrinking at an accelerating pace, analysts question how long the Kremlin can sustain its current level of war spending without deeper cuts to domestic programs or a risky expansion of money printing.

Ukraine and the West tighten the noose

Ukrainian officials and Western policymakers have expressed cautious optimism about the sanctions’ impact. Meanwhile, European Union and U.S. officials have signaled that further restrictions on Russian oil—including stricter enforcement of the G7 price cap—could be imminent.

Yet challenges remain. Russia has rerouted much of its oil to China, India and “shadow fleet” tankers, circumventing some sanctions. Additionally, OPEC+ production cuts have kept global oil prices elevated enough to provide Moscow with a financial cushion—though not enough to offset the steep discounts imposed on Urals crude.

With 2025 drawing to a close, Russia faces three unpalatable options:

• Dip into sovereign wealth funds – Russia’s National Welfare Fund still holds $150 billion, but rapid depletion could trigger economic instability.
• Implement austerity measures – cutting social spending or military budgets, risking public unrest or battlefield setbacks.
• Double down on sanctions evasion – further obfuscating oil shipments through shell companies and dark fleet tankers, risking secondary U.S. sanctions.

The Finance Ministry’s official November revenue figures, set to be published on Dec. 3, will provide further clarity. But one thing is already clear: Russia’s war economy is under strain, and the West’s sanctions regime is biting harder than ever.

While Putin’s rhetorical defiance remains unchanged, the economic reality is undeniable. Russia’s oil-dependent budget is shrinking at an alarming rate, and with no end in sight to the Ukraine war, the Kremlin may soon face painful choices.

If oil prices remain suppressed and sanctions continue to tighten, Russia could be forced into deeper economic isolation, accelerating its pivot to Asia—but even that may not be enough. The longer the war drags on, the more Russia’s financial foundations crack.

For now, the West’s strategy of economic attrition appears to be working. But with Putin’s regime showing no signs of backing down, the next phase of this financial war could be even more brutal.

Watch the video below about Russian oil profits collapsing as refined sales crash.

This video is from the MEGA (Make Earth Great Again) channel on Brighteon.com.

Sources include:

OilPrice.com

Reuters.com

BrightU.ai

UNN.ua

United24Media.com

Brighteon.com