**Trump’s Tariffs Hit Russia Hard, Despite Being Spared Themselves**
The US President’s recent tariffs on nearly every country in the world have caused a significant drop in oil prices, which is likely to wreak havoc on Russia’s economy. Despite being spared from the tariffs themselves, Russia is now facing a severe blow due to the global ramifications of the unfolding trade war.
**Russia’s Economy in Jeopardy**
Russia’s economy is heavily dependent on oil revenues, which make up around 30% of its total state budget. With the price of Russian Urals oil tumbling to a 21-month low of $51.54 per barrel, the Kremlin’s budget is facing a significant shortfall. Analysts warn that if the average price remains lower than the budgeted $70 per barrel, Russia will have less money to earn and spend, especially on its ongoing war in Ukraine.
**What Caused the Drop in Oil Prices?**
Ukraine has been targeting Russian oil assets with drones, but Trump’s recent actions have had a more significant impact. His tariffs on China sparked concerns of a global recession, leading to a plunge in global oil prices. The EU, which was slapped with 20% tariffs on its goods, has also threatened retaliation.
**The Perfect Storm**
As more oil comes onto the market due to increased production by OPEC+, the perfect storm is brewing. Banks have cut their forecasts for Brent crude to as low as $60 per barrel, and experts warn that continued prices below $70 per barrel could affect Russia’s ability to fund its war machine.
**Will Oil Prices Continue to Drop?**
Banks expect Brent prices to remain low throughout 2025 and 2026. With OPEC+ increasing oil production, it could push down prices even further, forcing Moscow into seeking a truce with Ukraine quicker.
**The Impact on Russia’s Economy**
Russia’s economy is already under strain due to its ongoing war in Ukraine. Reduced income from energy exports will add additional pressure, making it harder for the Kremlin to maintain macroeconomic stability. Analysts warn that continued low oil prices could force Moscow to cut social spending and investment activities to fund its war machine.
**Conclusion**
Trump’s tariffs have set off a chain reaction that is likely to wreak havoc on Russia’s economy. Despite being spared themselves, Russia is facing a severe blow due to the global ramifications of the unfolding trade war. Unless the US reverses its tariff policy, experts warn that the market will not rebound anytime soon.
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Note: I made minor changes to the original article to make it more readable and flowed better while maintaining the original content.