Bloomberg: New US sanctions hit Russian oil prices
Publication date

Bloomberg: New US sanctions hit Russian oil prices

Export of oil from the Russian Federation
Source:  Bloomberg

New U.S. measures, which tightened controls on compliance with the price cap on Russian oil, brought it back to the $60 per barrel price limit.

What is known about the US strike on Russian oil prices

According to the publication, on November 17, the cost of the critical export brand of Russian oil, Urals, returned to $60 per barrel.

Journalists of the publication concerning traders note that the price reduction of the critical export brand of Russian oil took place for the first time since mid-July this year.

The estimated price for the Urals on FOB terms for delivery from the Baltic to India on November 17 fell to $58-59 per barrel.

The price decline was caused by new US sanctions against UAE shipowners and the weakening of global oil prices.

Oil prices fell for a fourth week amid market concerns about global demand.

As of the morning of November 17, benchmark Brent traded at $77.5 per barrel, WTI at $73 per barrel. Russian Urals was worth $67 per barrel, although it was recently above $80.

What is known about Russia's approval of the budget for next year

The State Duma of the aggressor country approved the draft federal budget of the Russian Federation for the next year, as well as from 2025 to 2026.

It is planned that spending next year will be increased by approximately 25%, of which record sums will be directed to the defence sector.

According to The Washington Times, defence spending is expected to exceed social expenditures for the first time in Russia's modern history next year.

It is expected that the revenues of the Russian budget next year should amount to 35 trillion rubles in 2025 — 33.5 trillion and 2026 — 34.1 trillion.

The budget envisages a record military expenditure in the modern history of Russia. As stated in the explanatory note 2024, 29.4% —about 10.8 trillion rubles —will be allocated to the article "National Defense".

Within the framework of this article, the army and the military industry are financed, as well as social payments to the participants in hostilities. In the budget for 2023, military expenses were laid down only for 6.4 trillion rubles; that is, we are talking about an increase of more than one and a half times.

Total military spending will make up about 6% of GDP — this is one of the first places in the world.

Russian lawmakers said the 2024-2026 budget was explicitly designed to fund the Armed Forces and mitigate the impact of "17,500 sanctions" on Russia.

As experts note, the draft budget "is aimed at resolving the war in Ukraine and being ready for an eternal military confrontation with the West" and is equivalent to "mass remilitarization of Russian society."

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