Crude oil
Russia’s major oil companies have suffered a major economic setback in the first half of 2025. The fall in crude oil prices in the international market, the strict restrictions of Western countries and the strength of Russian currency rubles have made a profound impact on the earnings of companies. The country’s largest oil producing company Rosneft PJSC has recorded a net profit of 245 billion rubles (about 3 billion dollars) in the first half of the year, which is 68 per cent less than the same period last year. Because of this, the economy of the country is also getting weaker.
According to The Economics report, this major decline in profit was not limited to Rosneft. Its effect on the income of other big oil companies of Russia is also clearly shown. Experts say that in the current situation, it is also becoming challenging for oil companies to extract costs. Also, exports have also been affected due to Western restrictions, due to which the income from foreign markets is decreasing.
Fall in oil prices and oversply spoiled the situation
Rosneft’s CEO Igor Sechin said that in the first half of this year, oil prices were low, as oil production was high worldwide. OPEC+ countries reinstated the supply of oil early as well as the demand for crude oil was weak due to the possibility of global recession. Due to this, the price of Russia’s main export oil brand Urals was an average of $ 58 per barrel, which is 13% less than last year.
Exporters suffered loss due to strength of ruble
In the first half of 2025, the Russian currency rubles strengthened a tremendous strength. During this period, the ruble rose nearly 23% against the US dollar and reached close to 1 dollar = 79.65 rubles by 31 August. This strength had a direct impact on exporting companies because they got less rubles for every barrel oil. Also, the high interest rate policy of the central bank also increased the cost of repaying the loans of companies.
Restures further increased the crisis
Russian oil has to be sold on the international market due to the restrictions imposed by Western countries, especially the US and the European Union. This discount has also affected the income of companies. “Russian oil exemptions have increased due to restrictions, and it has a direct impact on our financial performance with strong rubles.” He believes that the cut in interest rates so far, which is not enough 300 basis points in June and July. Interest rates are reduced due to prolonged stay, debt is expensive, and questions arise on the financial strength of companies.
Other companies also have a big loss
Like Rosneft, Lukoil PJSC and Gazprom NEFT PJSC have also fallen by more than 50% in their profits. At the same time, the profit of Tatneft PJSC, which is a little small company, has fallen to 62%. This decline clearly shows the economic pressure on Russia’s oil sector. Although global oil companies are also struggling with weak prices, Russia companies have suffered more damage due to especially Bhurajnical stress, restrictions and currency fluctuations.