The Russian economy is experiencing a difficult period, in particular due to the fall in oil production and a decrease in its price in the world market. According to The Moscow Times, the situation is exacerbated by reducing oil reserves in the country, increasing the cost of production and problems with the purchase of necessary equipment through international sanctions.
Recently published data from the Ministry of Finance of the Russian Federation show a significant decrease in income from oil and gas taxes. In February this year, the income from oil tax fell by almost 25% compared to the same period of 2024. This decrease was the result of a reduction in oil production, in particular on high tax projects. As a result of the federal budget, they decreased by 23%, reaching the amount of 610 billion rubles (about $ 6.8 billion). The Russian government was forced to start selling currency from the National Welfare Fund for the first time in a year and a half to cover the budget deficit. From April 7 to May 12, the Ministry of Finance plans to sell yuan and gold for 35.9 billion rubles, or about 1.6 billion rubles daily.
This step is caused by the fact that the cost of oil Urals has fallen below $ 60 per barrel, which is much lower than the estimated price for the Russian budget ($ 69.7 per barrel). According to the Ministry of Economic Development of the Russian Federation, in March the price of oil Urals averaged $ 58.99 per barrel - a record low from the summer of 2023. In addition, Russia has reduced oil production to 9 million barrels per day, which is a significant fall compared to 10 million barrels per day, which were produced a year ago. As a result, the oil and gas revenues of the budget decreased by 17% in March, and as a result of the first quarter - by 10%. These difficulties are complicated by further reducing the world's oil prices. Saudi Arabia has made the most in the last two years a decrease in the price of its oil, reducing the cost of Arab Light by $ 2.30 per barrel for Asian buyers. This happened against the background of OPEC+ solution to significantly increase oil production by 400,000 barrels per day. Reducing oil prices has become a serious blow to Russia, as its economy is critical of income on oil and gas exports. It can also have serious consequences for financing the war against Ukraine, since much of Russia's military expenditures are covered by oil and gas income.
If the fall in oil prices continues, Russia may be faced with a choice between reducing military expenditures or increasing the printing of rubles, which can lead to inflation. In both cases, the country will fall into a serious economic crisis, which will be reflected in the well -being of Russian citizens.
