Spiking oil prices helped Russia energy-tax revenue double last month

• Tax revenue from oil and gas nearly doubled from a year ago, Bloomberg reported.
• Tax proceeds are based on the price of Urals crude, which spiked year-over-year.

Tax proceeds from Russia's energy sector jumped by 90% in March from a year ago, amid a surge in oil prices to multi-month highs, Bloomberg reported.

Last month, gas and oil revenue reached over 1.3 trillion rubles, nearly double the 688 billion rubles levied in the same month last year. Leading the increase were taxes on crude and petroleum products, the outlet said.

As Russian oil tax is based on the price of Urals crude, appreciation in this key export blend propelled proceeds higher. By March, Urals averaged $68.34 per barrel, a considerable increase from $47.85 a year ago.

Through the first months of 2023, Moscow has continued to steer clear of Western sanctions on its energy exports, focusing trade on Asian markets and dispatching a fleet of under-the-radar tankers.

Western restrictions have not been enough to slow Russia's export volumes, with seaborne shipments surging to 2024's highest level in the last week of March, according to Bloomberg.

Through the first quarter, seaborne crude exports were just above the 300,000 barrel a day limit Russia imposed on itself, part of an OPEC+ strategy to keep oil prices from falling.

But 2024 has also witnessed tighter sanctions enforcement from the US and its allies, which may be shifting demand for Russian energy products.

For instance, though India has been a major buyer of Russian crude since 2022, it's begun rejecting some shipments from the country. That's as Western sanctions against individual vessels have added to freight costs, diminishing the discount that Moscow can offers New Delhi on its oil.

March's revenue also stood out from the fact that it is one of the four months in which Russia collects oil-tax payments, Bloomberg said.