Foreign analysts point out that the price of Russian oil in rubles has fallen below 4,000 rubles per barrel. What is important to understand is that this is the lowest figure in the last two years, and also 40% less than provided for in the state budget of the aggressor country.
Points of attention
- Analysts predict that Putin's response to the economic pressure may lead to a series of unpopular measures, impacting the Russian economy and potentially affecting global markets.
- The current downward trend in global oil prices, triggered by Trump's trade policies, raises concerns about a broader economic slowdown and its implications for oil-dependent countries like Russia.
Putin will have to make painful decisions for Russia
Economists point out that the average price of the Urals and ESPO blend has fallen to $48.92 per barrel, or 3,900 rubles. But the Russian budget was set at 6,700 rubles.
The last time the price was this low was in May 2023. Moreover, it significantly falls short of the updated government forecast.
This is 5,281 rubles per barrel, which is used to calculate taxes.
It is also indicated that the aggressor country Russia has already increased military spending by 25% for 2025 — to 6.3% of GDP.
According to experts, this is the highest figure since the Cold War.
Many analysts are inclined to believe that Putin will be forced to raise taxes, cut spending on social programs, and increase borrowing.
Global oil prices have lost more than 10% over the past six trading sessions and are down more than 20% since April, when US President Donald Trump's trade tariff announcements sparked fears of a global economic slowdown.
