Russia's Oil and Gas Revenues Decline 17.2% Amid Ukrainian Drone Strikes

Russia's federal budget revenues from oil and gas fell by 17.2% year-on-year in the first nine months of 2026, resulting in an estimated $14.1 billion shortfall. This decline occurred despite rising oil prices, with Ukrainian drone attacks pushing Russian oil processing to a 20-year low. The strengthening of the ruble against the dollar was also cited as a factor in the revenue shortfall.