Russia's federal budget revenue from oil and gas sales may drop in May by around 55 billion roubles (US$708 million) compared with April, due to a fall in profit-based tax on oil production, Reuters calculations showed on May 18.

According to the calculations, oil and gas revenues may reach 593 billion roubles, down from 648 billion roubles in April and 886 billion roubles in May 2022.

The decline in income from oil - a huge source of budget revenue — is likely to exacerbate an already high budget shortfall. Russia recorded a 3.4 trillion-rouble ($44 billion) deficit in the first four months of the year as spending rose, not least from Moscow's military campaign in Ukraine, and energy revenue fell.

Russian oil and gas are subject to a range of Western sanctions limiting sales to the West and also attempting to cap the global price of Russian oil.

Finance Minister Anton Siluanov said on May 17 that Russia's revenues from oil and gas were behind plan.

Profit-based tax may drop to as low as zero this month as the taxpayers are allowed to pay it approximately once in a quarter, and it's not usually in May.

In March and April, the tax generated payments to the budgets of 221 billion roubles and 185 billion roubles respectively, according to finance ministry.

At the same time, the mineral extraction tax revenue on oil may rise this month by 128 billion roubles from April thanks to an increase in prices of Russia's flagship Urals oil blend and a weaker rouble.