Putin betrayed by economy minister as oil price keeps plunging

Russia’s economic situation has taken a fresh blow as the Ministry of Economic Development downgraded its forecast for crude oil prices.

Oil, alongside natural gas, remains one of Moscow’s most crucial sources of income. However, since the start of the war in Ukraine, the price of Russian oil exports has been capped due to Western sanctions.

According to the Interfax news agency, the Russian Ministry has lowered its oil price estimate by 17%. The price of oil from the Urals region has also dropped significantly — from $69.70 to $56 per barrel.

Revenue from oil and gas exports continues to fund Russia’s war effort in Ukraine. Vladimir Putin recently announced an increase in defense spending, underscoring the government’s ongoing military priorities.

Adding to the pressure, Russia has also been hit by international tariffs imposed by U.S. President Donald Trump, though the sanctions weren’t directly aimed at Moscow.

Despite falling oil prices, Russia’s Ministry of Economic Development has said it does not anticipate a recession.

(QG - Source: The Daily Express - Picture : © Unsplash)