Russia's oil and gas revenues experienced a sharp decline in June 2025, falling by approximately one-third year-on-year to 494.8 billion rubles ($6.29 billion), marking the lowest level since January 2023. Oil industry income specifically dropped nearly 30% to around 415.6 billion rubles ($5.27 billion), reflecting a two-year low. This downturn is attributed to a combination of factors including weak global crude prices, a stronger ruble, and ongoing Western sanctions that continue to pressure Russia's energy sector and its broader war economy. Additionally, pipeline gas exports to Europe have collapsed to their lowest levels since the early 1970s, with Gazprom shipping just 8.3 billion cubic meters in the first quarter of 2025, down 47% year-on-year and expected to finish below 16 billion cubic meters for the year compared to 175 billion cubic meters before 2022. Seaborne crude exports also fell to their lowest in four months in June, partly due to reduced Chinese purchases amid refinery maintenance and less favorable pricing. These developments are contributing to increased strain on Russia's federal finances and raising concerns about funding for military expenditures. Meanwhile, the liquid portion of Russia's National Wealth Fund increased by 1.3 trillion rubles in June.