Although the Kremlin has denied that oil prices affect political solutions, it is an economic pressure that may seek Moscow for a way of war against Ukraine, says some Western observers.
The price of a Russian oil barrel fell below 4 thousand rubles to the lowest level from May 2023. This has been proven by data Reuters.
The current cost of the Urals and Espo mixture is 3,987 rubles ($ 48.92), which is 40% less than the level of 6,726 rubles on the budget.
This significantly improves pressure on the Russian economy, which already has a growing budget deficit. Due to the collapse of energy prices providing a third of budget revenues, the Russian Federation government last week increased the shortage of 2025 assessment from 0.5% to 1.7% of GDP.
Analysts believe that Russia can increase taxes or reduce social costs to prevent a military budget reduction, which in 2025 should grow to 6.3% of GDP – a record level from the Cold War time.
Although the Kremlin has denied that oil prices affect political solutions, it is an economic pressure that may seek Moscow for a way of war against Ukraine, says some Western observers.
Remember that last month, oil prices have fallen for more than three years. In general, in April, Brent lost 15%in price, and WTI – 17%.
As reported, Russia has significantly reduced expectations for oil prices in 2025. Each dollar, reduced by oil prices, costs the Russian Federation budget of nearly 160 billion in revenue rubles per year.
News from CORRESPONDENT.NET On the telegram and whatsapp. Subscribe to our channels https://t.me/KorresPondentNet and WhatsApp
Source: korrespondent
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.