Russia’s oil and gas sector is grappling with significant financial and logistical challenges. The industry is under pressure from Ukrainian drone attacks on refining capacity, a drop in revenues, and new international sanctions.
Russia’s oil and gas revenues for September 2025 were down 25% compared to the previous year, contributing to a worsening budget deficit. Weaker global crude prices and a strengthening ruble contributed to the revenue drop.
As of October, Russia is set to increase its oil production by 42,000 barrels per day, according to a recent OPEC+ agreement to ease voluntary cuts.
Despite setbacks in its refining sector, Russia’s exports of unrefined crude oil reached a record high in late September, showing that Moscow is still able to sell its crude supply on the global market.
In a move away from reliance on Russian gas, Hungary announced in October that it is seeking to begin imports from Turkmenistan. This comes even as Hungary, Gazprom’s largest EU client, signed a long-term LNG contract with a French company.
Gazprom announced a new record for daily gas supplies within Russia’s domestic network on September 30, before the official start of October.
Note by Alessandro Bazzoni