Russia\u2019s federal budget is set to record a third consecutive year of declining gas export revenues as Gazprom\u2019s supplies to Europe fall to their lowest levels in more than half a century and exports to China fail to offset the lost income.<\/p>\n
The budget collected 420 billion rubles ($5.38 billion) in gas export duties between January and November and is expected to receive about 470 billion rubles ($6.02 billion) by year-end, Reuters calculated<\/a> based on Finance Ministry data.<\/p>\n That would mark a 4% decline, or about 20 billion rubles ($256 million), from last year.<\/p>\n Compared with 2023, revenues are down 17%, or 96 billion rubles ($1.23 billion).<\/p>\n If confirmed, this year\u2019s figure would be the lowest since the pandemic-hit year of 2020, when gas export duties totaled 439.1 billion rubles ($5.62 billion), Finance Ministry data show<\/a>.<\/p>\n Gas export revenues peaked at a record 1.6 trillion rubles\u00a0($20.5 billion) in 2022, when Gazprom was still supplying large volumes to Europe and prices surged to nearly $4,000 per 1,000 cubic meters.<\/p>\n Since then, proceeds from gas export duties have fallen almost fourfold and remain 30-40% below pre-war levels seen in 2018-2019.<\/p>\n China has become Russia\u2019s largest gas customer, with purchases via the Power of Siberia pipeline set to reach 38.6-38.7 billion cubic meters this year, a source familiar with the data told Reuters. That is\u00a0slightly above the pipeline’s design capacity.<\/p>\n However, exports to Europe have fallen by a further 45% from last year following the halt<\/a> of transit through Ukraine, leaving volumes at their lowest<\/a> since the early 1970s.<\/p>\n Total gas exports to non-CIS countries are expected to amount to 78 billion cubic meters this year, 2.6 times less than in 2018-2019, brokerage BCS estimates<\/a>.<\/p>\n \u201cIn volume terms, the Chinese direction is gradually compensating for part of the lost European market,\u201d said Vladimir Chernov, an analyst at Freedom Finance Global. \u201cBut the financial result remains constrained by an oil-linked pricing formula and the long payback period for infrastructure.\u201d<\/p>\n