(MOSCOW) – Russia’s largest state aligned oil company has reported a sharp fall in income for the first three quarters of 2025, revealing a 79 percent decline compared with the previous year. The figures, published after new United States sanctions and months of Ukrainian drone strikes on energy infrastructure, have drawn renewed attention to the pressure facing Russia’s oil sector.
The company stated that income during the first three quarters was 277 billion roubles, far below its planned 926 billion roubles. At the current exchange rate, this is approximately 3.08 billion US dollars earned against a target of about 10.29 billion US dollars. These figures exclude the impact of Ukrainian strikes carried out in November, which analysts say will further reduce expected annual revenue.
| Period (2025) | Planned Income (RUB) | Planned (USD) | Actual Income (RUB) | Actual (USD) | Loss |
|---|---|---|---|---|---|
| Q1–Q3 | 926 billion | 10.29 billion | 277 billion | 3.08 billion | 79 percent |
USD equivalents calculated at an approximate exchange rate of 1 USD = 90 RUB.
Ukrainian officials said November marked the most extensive month of strikes on Russian oil sites since the full scale invasion began. Fourteen oil facilities, including refineries, storage terminals and vessels linked to the shadow tanker fleet, were targeted during the month. Several of the facilities were located in regions far from Ukraine’s borders, highlighting Kyiv’s expanded drone range.
Ukraine argues that degrading Russia’s oil production capacity shortens the war by limiting the funds available to finance military operations. Officials describe the strategy as a focused and humane method of reducing Russia’s ability to sustain the conflict.
Russian state energy firms, once the wealthiest companies in the country before the 2022 invasion, now face growing debt and shrinking repair capacity. Restrictions on the import of specialised equipment have made it increasingly difficult for them to restore damaged refineries and terminals.
Ukraine has criticised international statements urging Kyiv not to target Russian oil assets or shadow fleet tankers. Ukrainian officials say several governments expressed concern about disruptions to commercial activity, but these same states did not show similar concern after Russian missile strikes that killed dozens of civilians in residential buildings.
Ukraine maintains that its defensive actions are often labelled as escalation, while large scale Russian attacks on civilian infrastructure are widely treated as ordinary wartime events. Kyiv has stated that it will not accept pressure to reduce defensive operations while its territory continues to face air strikes.
The Russian dictator remains heavily dependent on oil revenue to finance military spending. With debt rising at major state firms and little transparency in financial reporting, observers say the true condition of the sector is likely worse than published figures indicate. The oil company announced that it would stop disclosing certain financial transactions, limiting access for international analysts and Russian journalists.
Russia has also reduced its oil prices to retain buyers in Asia and maintain export volumes. However, lower prices mean reduced revenue for the state budget, intensifying the financial strain. Industry experts note that Russian producers risk being forced to halt production if storage reaches capacity. If wells are shut down and freeze, the long term damage could mirror the decline seen in Venezuela’s oil sector.
Ukraine argues that full accountability for the war, including legal consequences for senior Russian leadership, is necessary to achieve lasting peace. Kyiv says the collapse of Russia’s oil finances demonstrates the impact of sanctions and military pressure on the country’s war economy.
Ukraine continues to call on international partners to avoid purchasing sanctioned Russian oil. Officials say buyers of discounted crude indirectly support the continuation of the conflict.
