Russian economy hit hard by oil price slump amid global turmoil
The Russians felt the impact of the crash on global exchanges, which occurred on Monday, April 7, due to tariffs imposed by U.S. President Donald Trump. Not only did Russian companies' stocks suffer, but oil prices also dropped. Bloomberg indicates that this will affect Russia's military capabilities and potentially limit the strength of attacks on Ukraine.
It was a bleak day in the world markets. Since the morning of April 7, stock indices on exchanges worldwide have been plummeting. "Red Monday" affected companies in the United States, China, and those in the European Union, including Poland.
Russian companies recorded a significant decline. The Moscow stock exchange was dominated by the color red. However, this is not the only issue for Russia's economy. Alongside the stock market drops, the price of Russian crude oil fell significantly.
Bloomberg reports that the price per barrel is around $50 today. This is the lowest figure for 2025 and the lowest in 21 months. This sudden drop will have significant consequences for Russia's budget.
Will Russia have to limit attacks on Ukraine? It's an effect of falling oil prices
According to Bloomberg experts, the Kremlin will be backed into a corner. To balance budget spending, authorities in Moscow must reduce military funding. This could mean that plans to increase funds allocated for the conflict with Ukraine might not come to fruition.
Experts point out that to balance the budget, a barrel of Russian oil should cost around $60. This suggests that losses will be significant and difficult to recover.
The stock market crash and the fall in oil prices are effects of the tariffs imposed by the Trump administration. The American politician imposed tariffs on products from countries including China, Switzerland, and the European Union. While Russia was not directly affected by the tariffs, Trump's decision significantly impacted the local economy.
