Russia's oil tax price runs 40% above budget target in September

The rouble-denominated price of Russian oil used for tax calculations has averaged roughly 40% above the level assumed in the federal budget so far this month, easing pressure on state finances.

In the first three weeks of September, the tax price of Russian oil averaged 7,640 roubles ($90.37) per barrel, about a third higher than in August.

Global oil prices have been holding near $100 per barrel amid tensions in the Middle East, while a weaker rouble has raised the value of oil sales in local currency terms.

For budget revenue calculations, the government assumed a Russian oil price of $59 per barrel and an exchange rate of 92.2 roubles to the dollar, equivalent to 5,440 roubles per barrel.

Russia expects a budget deficit equal to 3% of gross domestic product in 2026, almost double its original target and higher than last year.

The government raised taxes this year to help fund spending on the war in Ukraine, aiming to reduce the budget deficit to 1.6% of GDP from 2.6% in 2025. However, the deficit for January to August had already reached 2.5% of GDP.

($1 = 84.5403 roubles)