Dropped the income of Russian production companies oil In the first half of 2025, due to the decrease in crude oil prices and the reinforcement of the ruble.
Rosneft, the state giant, representing more than one -third of Russia’s total oil production, reported net revenue of 245 billion rubles ($ 3 billion) in the first half of the year, declining more than 68% compared to the corresponding period of 2024, according to Bloomberg.
“The first half of this year was marked by lower oil prices, mainly due to oil production,” said Rosneft CEO Igor Sechin. “In addition, there has been an increase in discounts in Russian oil due to the tightening of EU and US sanctions restrictions and the significant reinforcement of the ruble’s exchange rate, which negatively affected the economic results of all exporters.”
The fall follows the weaker results of Rosneft’s Russian bonds. Earlier this week, Lukoil, the country’s second largest oil producer, and Gazprom Neft, the Gazprom Gasprom Gas Petroleum, reported more than 50% decreased annually in their earnings for the first six months, while the smallest tatneft fell 62%.
The fall in crude oil prices worldwide undermined the profits of large oil companies around the world in the first half of the year, amid fears of global over -supply. OPEC+ restores faster than expected the limited market offering, while US President Donald Trump’s duty policy threatens to slow down the global economy.
It is not clear to what extent the decline in profits is due to the western sanctions and restrictions imposed on Russia in response to the war in Ukraine, in order to limit Kremlin’s access to conflict capital.
It is worth noting that Urals, Russia’s main export blend, had an average price of $ 58 a barrel in the first half of this year, declining more than 13% compared to last year.
At the same time, the ruble was almost 23% deriving at 78,4685 per June 30 dollar compared to the end of last year, as Russia’s main interest rate remained close to historically high levels. This aid meant that the Russian producers received fewer rubles for each barrel they drawn and sold.
While the Russian Central Bank reduced the cost of borrowing by a total of 300 basis points at June and July meetings, the rate of reductions is “clearly inadequate”, Sechin said.
“One of the consequences of maintaining a high level of high level for a long time is the excessive appreciation of the ruble, which leads to losses for both the Russian budget and export companies,” he said. “It also causes an increase in debt service costs, aggravating the financial stability of corporate borrowers and undermining the investment potential,” he added.