The price of Russian oil in rubles has fallen below ₽4,000 per barrel for the first time in the last two years. This is 40% lower than what was projected in the federal budget of the Russian Federation, according to Reuters.
This is reported by Бізнес • Медіа
The average price of Russian grades Urals and ESPO on May 2 dropped to $48.92 per barrel, which corresponds to a price of ₽3,987. This amount exceeds the 40% threshold of ₽6,726 set in the budget for 2025. The stated price is the lowest since May 2023.
Global Oil Prices Decline
Global oil prices have fallen by more than 20% since the beginning of April. This decline is a result of the unpredictable tariff policy of U.S. President Donald Trump, as well as OPEC+’s decisions to accelerate oil production recovery.
Prospects for the Russian Economy
According to analysts’ forecasts, the Russian economy could decline by 0.3% in January-March 2025 after a growth of 1.3% in October-December 2024. This quarterly drop would be the first since the second quarter of 2022. The main reason for this is the weakening of industrial production against the backdrop of falling oil prices. Considering seasonality, the aggressor’s GDP could shrink even more – by 0.6-0.8%, with some estimates suggesting a decline of 1.5%.
“This is the lowest figure since May 2023.”