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Russia’s energy income has surged as the Iran conflict disrupts global supply chains, increasing demand for Russian crude and allowing Moscow to capitalize on higher market prices.

Data from the Kyiv School of Economics (KSE) indicates that Russia’s oil and gas revenues are set to nearly double this month, rising from approximately $12 billion to almost $24 billion. The increase is driven by surging global oil prices and temporary U.S. sanctions waivers that have eased trade constraints.

Even if the conflict ends in the coming weeks, Russia’s total oil and gas export revenues are projected to reach $218.5 billion this year—63% higher than pre-conflict forecasts. This would generate an additional $84 billion in unexpected income for Moscow.

Should the conflict persist for another six months, annual revenues could climb to $386.5 billion, representing a 188% increase compared to earlier projections. Analysts say prolonged instability in the Middle East would continue to support elevated oil prices, benefiting major exporters like Russia.

At a recent Kremlin economic meeting, Russian President Vladimir Putin urged energy companies to use the additional revenue to reduce their financial liabilities.

“Russian oil and gas companies should consider using additional revenue from rising global hydrocarbon prices to reduce their debt burden and pay off their debt to domestic banks,” Putin said.

The report also highlights the role of temporary U.S. sanctions waivers, which have allowed some Russian oil shipments already in transit to proceed with fewer restrictions. This has reduced transaction risks and enabled Russia to sell crude at prices closer to global benchmarks, narrowing previous discounts.

Global oil prices have surged sharply since the Iran conflict began, with Brent crude rising about 40% to around $105 per barrel. Russian oil prices have increased even faster, further amplifying Moscow’s export revenues.