Russia's crude oil exports show little sign of slowing, but energy revenue is tumbling

• Russian crude exports rebounded sharply last week to the highest in nearly two months.
• But the Kremlin's revenue from oil and gas taxes sank 26% in June from a year ago.

Russian exports of crude oil surged to a seven-week high last week, but such gains have not been enough to alleviate sliding energy tax revenue.

According to vessel-tracking data monitored by Bloomberg, the seven days to July 2 saw seaborne outflows jump to 1.3 million barrel a day, rebounding from a maintenance-caused lull in the prior week and lifting the four-week average to 3.39 million barrels a day.

But Russia's finance ministry said oil and gas tax proceeds dropped by 26% in June from a year ago to about 529 billion rubles, or $5.84 billion, extending a decline that began in March.

The drop in tax revenue comes as oil prices have fallen this year on expectations for weaker demand from China, which has seen its post-COVID economic rebound fizzle.

Meanwhile, Russia's gas exports to Europe have tumbled and were the biggest drag on revenue from that energy source.

Revenue from oil and gas taxes accounts for a third of Moscow's budget, which is already under pressure from military spending due to its war on Ukraine.

The Kremlin has tried to prop up oil prices, and recently joined Saudi Arabia in extending voluntary crude production cuts into the summer.

However, Russia's previous pledges to trim output were followed by increases in oil exports, suggesting Moscow wasn't actually pulling back on production.