russian Oil Companies’ Profits Plummeted by 50 % in the First Half of 2025

The russian oil companies’ financial statements for the first half of 2025 show a sharp decline in profitability. The cumulative result for the oil and gas sector decreased by 50.4 %. At this, 45 % of companies ended the half-year with losses of $9.4 billion.

The biggest losses were suffered by PJSC “Russneft” (-69 %), “Rosneft” (-68 %), “Tatneft” (-62 %), “Gazprom Neft” (-54 %), “Lukoil” (-51 %), and “Surgutneftegaz” (-50 %). Declines were also recorded by gas companies “Novatek” (-17 %) and “Gazprom” (-6 %).

Key factors: the decline in the price of Urals oil from $70 in January to $59.8 in June (minus 30 % in rubles), Western sanctions, a decline in exports (supplies to China decreased by 11 % in physical terms and by 24 % in monetary terms), as well as a shortage of tankers and port congestion.

Additional pressure came from rising tariffs for services provided by major infrastructure suppliers (in particular, transport, gas supply, and electricity): oil transportation by “Transneft” (+9.9 %), petroleum products (+13.8 %), freight transportation by RZD (+13.8 %), gas from “Gazprom” (+10.2 %), and electricity (+11.6 %).

The decline in profitability threatens to widen the budget deficit, reduce investment in strategic projects, and slow down economic growth in the rf.