His energy income Russia fell to a 13-month low in August as Western sanctions forced the Kremlin to sell oil at reduced prices and limited flows natural gas to Europe.

Their reduction is a consequence of Western sanctions.

The refusal of some traditional buyers in Europe to buy Russian oil, writes Bloomberg, forced Moscow to sell it in Asian markets at a deep discount, which deprived it of the benefit of higher prices. And while spot prices for natural gas reached record levels in Europe in August, its smaller share in the Russian budget could not fully compensate for the decline in oil revenues. The state-owned Gazprom significantly cut gas exports to Europe this summer, citing operational problems caused by sanctions. Oil and gas revenues, which account for more than a third of Russia’s budget, fell to 671.9 billion rubles ($11.1 billion) last month, the lowest level since June 2021, Finance Ministry data showed on Monday. This is almost 13 percent less than in July and 3.4 percent less than a year ago, even though Urals oil prices have risen nearly 10 percent over the past year.

Another blow to the Kremlin’s treasury could come from the G7’s proposed price cap on Russian oil and petroleum products. President Vladimir Putin has said he will stop exports to countries that take such a measure, which, however, could further increase the discount for remaining buyers of Russian fuel. Russia’s monthly drop in oil and gas revenues in August is a result of tax rules, the country’s finance ministry said. Russian oil producers usually pay tax in April, July, October and January, based on the previous quarter’s profit. Thus, according to the RBC news agency, the tax increased July revenues by 306.3 billion rubles.