Russia's budget surplus tanked in August amid sanctions and slowing natural-gas supplies to Europe

• Russia's budget surplus fell to 137 billion rubles in the first eight months of 2022, per Bloomberg.
• In the first seven months of the year, Russia's budget surplus was 481 billion rubles.

Russia's budget surplus likely fell sharply in August on the back of sweeping sanctions and slowing energy exports.

In the first eight months of 2022, Russia's budget surplus declined to 137 billion rubles, or $2.1 billion — down more than two-thirds from 481 billion rubles in the first seven months of the year, Bloomberg reported on Monday, citing preliminary data from the country's finance ministry.

Russia's finance ministry doesn't provide monthly figures, but Bloomberg Economics' Alexander Isakov estimated the country posted a 300 billion-ruble deficit — meaning the country is spending more money than it makes — in August.

Despite sweeping sanctions, Russia's economy has been holding up as the energy giant has been raking in profits from high energy prices amid a supply crunch that was already in place before it invaded Ukraine.

However, Russia's revenue growth has been slowing steadily, according to data from the country's finance ministry compiled by Bloomberg. This comes as the country's energy exports face sanctions and boycotts, and are now priced at a discount to market prices.

Russia has also slowed natural-gas exports to Europe, its primary market. This in turn is likely to crimp Russia's natural-gas output because production would have to fall to meet lower shipment needs.

Meanwhile, Russia's spending has stayed strong, Bloomberg's data shows. This is in part due to Moscow boosting spending to support the economy.

Russia's finance ministry expects the country to post a 1.7 trillion ruble federal budget deficit in 2022, Interfax reported in July, citing an unnamed source familiar with the situation.

Still, Russian President Vladimir Putin said last Wednesday the country's state finances have "stabilized" and that it's expected to post a budget surplus of around 485 billion rubles in 2022, Reuters reported.