Russia's oil-export revenue fell to its lowest level since the Ukraine invasion in February, according to the International Energy Agency. Western sanctions have severely limited Russia's ability to sell crude oil, forcing the country to offer deeper discounts to attract buyers. The IEA noted that Kyiv's continued attacks on Russian oil infrastructure have further disrupted operations.

Energy exports have long been the backbone of Russia's economy, accounting for roughly a third of federal budget revenues. The combination of price caps on Russian oil and alternative supply routes has squeezed Moscow's earnings. Despite efforts to redirect shipments to Asian markets, particularly India and China, the overall volume and pricing power have diminished.

The IEA's assessment underscores the mounting economic pressure on Moscow as the war enters its third year. While Russia has attempted to circumvent Western restrictions, the sustained impact on its energy sector suggests that sanctions are achieving their intended effect of reducing war funding. The decline in oil revenue represents a significant blow to Russia's ability to finance its military operations.