(Bloomberg) -- Russia’s oil and gas tax revenue almost doubled in March from a year earlier as global prices of the nation’s crude jumped and its producers adapt to sanctions.

Budget proceeds from oil and gas levies rose by 90% last month from a year ago to almost 1.31 trillion rubles ($14.1 billion), the Finance Ministry said Wednesday. Taxes on crude and petroleum products — which accounted for more than 86% of total hydrocarbon revenue last month — contributed the most of the increase, according to Bloomberg News calculations based on data. 

The March budget revenues are also the highest in five months due to the Russian oil-tax payment schedule, under which the so-called profit-based tax is mainly paid four times a year: in March, April, July and October.

Russia’s oil sector is a key source of revenue for the nation’s coffers, which remain under pressure amid Western sanctions and the cost of the war in Ukraine. As Moscow’s invasion enters its third year, Ukraine has been targeting Russia’s vital energy industry. So far this year, Ukrainian drones damaged 12 major refineries and two smaller plants, with the latest attack occurring this week. 

The increase in budget revenue follows a spike in prices for Urals, Russia’s key export blend. It averaged $47.85 a barrel in March 2023, following the European Union’s ban on most seaborne imports of crude and petroleum products from Russia and a $60-a-barrel price cap imposed by the Group of Seven nations. 

As Moscow blunted the impact of energy sanctions by selling its oil to Asian clients and using a massive shadow fleet of tankers, the Urals price from Russia’s major western ports increased to average $68.34 a barrel for the most of last month, according to Bloomberg calculations based on data from Argus Media Ltd. The figure represents the so-called free-on-board cost of the crude, which excludes the cost of shipping and insurance required to deliver the crude to its buyer. 

Proceeds from oil-extraction tax rose 88% to 803 billion rubles in March, as the nation gradually increased the levy while at the same time reducing export duties to fully abolish them from this year. Revenue from the profit-based tax, which covers half of the nation’s oil production, rose by 166% to 587.5 billion rubles. 

Russia also paid 164.4 billion rubles of subsidies to its oil refiners last month for domestic supplies of diesel and gasoline, according to the Finance Ministry. The payments, which usually dent oil revenue, have partially compensated refiners for the gap between car fuel prices in the domestic and foreign markets.

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