Putin financially weakened as main revenue source sinks

A drop in oil prices, driven by the trade war initiated by Donald Trump, could limit Vladimir Putin’s ability to continue financing the war in Ukraine.

One-third of Moscow’s budget comes from oil and gas exports, and revenues could shrink by about 2.5% this year if oil prices remain at current levels.

As a result, the Kremlin may be forced to either make budget cuts in other sectors or scale back military spending to preserve financial reserves.

In just two years, the price of Ural crude oil has hit its lowest point, with tariffs imposed by the Trump administration boosting production among OPEC members.

This loss of revenue adds to Russia’s already fragile economic situation, with inflation reaching historic highs and interest rates remaining extremely elevated.

(QG - Source: The Financial Times - Picture : © Unsplash)