How Russia Is Making $150 Million a Day From Higher Oil Prices

Russia is emerging as one of the clearest financial winners from the oil shock now rippling through global markets. A Financial Times report says Moscow is making as much as $150 million a day in extra revenue from the latest surge in crude prices, as war-driven disruption in the Middle East tightens supply and sends more buyers toward Russian barrels.

The basic mechanism is simple. As fighting around Iran and the Strait of Hormuz pushed global oil prices sharply higher, Russian crude became more valuable too. Reuters reported that Russia’s revenue from its crude mineral extraction tax, its biggest oil tax, could rise to about 590 billion roubles ($7.43 billion) in March if prices stay near current levels, up from 300 billion roubles in February and 314 billion roubles in January. For a state where oil and gas provide roughly a quarter of federal budget proceeds, that is not a minor bounce. It is a serious fiscal reprieve.

The timing is especially important for the Kremlin. Earlier this year, Russia’s energy finances were under real pressure. Reuters reported in January that oil and gas revenue had fallen 24% in 2025 to the lowest level since 2020, dragged down by weaker oil prices and a stronger rouble. Oil and gas revenue remains one of the Kremlin’s main cash engines, particularly as military and security spending tied to the war in Ukraine remains high. In that context, the latest price spike is not just good news for Moscow. It is badly needed relief.

The other reason Russia is benefiting is demand. As Middle Eastern supply became less reliable, buyers in Asia started looking harder at Russian crude. Reuters reported on March 4 that buyer interest in Russian oil in India and China was increasing because disruption through Hormuz had tightened availability of Middle Eastern grades and pushed freight rates higher. The Financial Times separately reported that demand from India and China has surged enough that Moscow may collect roughly $1.3 billion in extra oil revenue already, with a possible $4.9 billion windfall by the end of March if current conditions persist.

That shift is also showing up in pricing. Reuters reported that the price of Russian oil used for taxation rose to 6,105 roubles per barrel on March 9, up 82% from February 27 and above the level assumed in Russia’s 2026 federal budget. Reuters also reported that Urals crude delivered to Indian ports traded at a premium to Brent for the first time, an extraordinary reversal for a grade that has spent much of the sanctions era selling at a discount. In a separate Reuters report, Urals from Russian ports was offered at around $76 per barrel on March 10, up from about $45 two weeks earlier.

That is the part of the story that matters most politically: higher oil prices do not just make Russia richer in the abstract. They help stabilize a budget strained by war and sanctions. Reuters noted that Russia’s budget deficit reached 3.45 trillion roubles in January-February, and that the jump in oil-tax pricing is offering at least partial relief. In practical terms, every sustained week of elevated crude makes it easier for the Kremlin to fund military spending, social obligations, and the broader costs of a wartime economy.

There are, however, limits to the windfall. Russia is not keeping every extra dollar cleanly. Reuters reported that tanker freight from Russia’s Baltic to India rose to about $22 million to $23 million per vessel, nearly double early-February rates, while Black Sea freight to India also climbed above $20 million. Those shipping costs eat into margins, especially for barrels that travel long distances to Asian buyers. So the story is not that Russia has suddenly escaped all pressure. It is that the price surge is more than offsetting some of the pressure that had been crushing revenues earlier this year.

The bigger implication is that the Middle East oil shock is reshaping the geopolitics of sanctions. Efforts by the West to limit Russia’s oil income work best when global supply is comfortable and buyers have options. They work less well when one of the world’s most important oil-export routes is under severe strain and large importers need replacement barrels quickly. That does not mean sanctions no longer matter. It means a tight oil market gives Moscow more leverage, better pricing, and more room to redirect flows.

So the headline number — $150 million a day in extra revenue — matters because it captures something bigger than a trading gain. It shows how quickly an external geopolitical crisis can refill Russia’s war chest. Only weeks ago, Moscow was dealing with falling energy revenues and a widening budget strain. Now, thanks to higher global crude prices and stronger Asian demand, the Kremlin is suddenly getting a windfall that could soften both. Whether that lasts depends on how long oil stays high, how long Hormuz remains disrupted, and how much of the extra income shipping and sanctions friction can absorb. But for now, the market is delivering Russia exactly what it needed most: pricier oil and buyers willing to pay up.