Russia's oil revenues to the state budget increased by almost 50% in May compared to last year. The reason for this was the rise in raw material prices, as well as the country's adaptation to international sanctions, according to Bloomberg.
The agency analyzed data from the Finance Ministry and concluded that oil-related taxes rose to 632.5 billion rubles ($7.1 billion) last month.
The increase in revenues followed a rise in Urals crude oil prices. The calculation was based on a price of $74.98 per barrel for Urals crude compared to $58.63 per barrel a year earlier.
“The blend’s discount to the global Brent benchmark has narrowed, even amid a price cap imposed by the Group of Seven nations,” the journalists write.
At the same time, Bloomberg notes that Russia has adapted to the restrictions, including the EU's ban on Russian oil imports, by using a massive “shadow fleet” of tankers and selling its oil to Asian clients.
Sanctions against the Russian oil industry
Western countries introduced a price cap for Russian oil in 2022, but it is not fully observed, as the Kremlin finds ways to circumvent the restrictions.
Recently, Reuters wrote that Russia's “shadow fleet” of tankers is causing environmental damage.