Russia is in unprecedented economic situation as global crude prices fall sharply following Trump’s global tariff shock and the OPEC’s decision to increase oil supply substantially.
The Kremlin has described the situation as “extremely tense” after Urals oil, Russia’s key export blend, dropped to around $52 per barrel — and even lower in some markets — amid a global market rout.
The sharp drop came after US President Trump announced a 10% tariff on all imports and additional reciprocal tariffs targeting countries with existing duties on US goods. These moves triggered panic across international markets, with oil, stocks, and commodities all taking a significant hit. Russia’s oil-dependent economy is particularly vulnerable.
Kremlin spokesperson Dmitry Peskov told reporters on Monday: “Of course, this indicator is very important for filling the budget. Our authorities are very closely monitoring the situation, which is currently extremely turbulent, tense, and emotionally charged. We aim to take measures in order to minimise the consequences of this economic storm.”
Urals oil was trading at $52 per barrel at the Baltic Sea port of Primorsk on Friday and slid closer to the $50 mark by Monday. The drop represents a major blow for Russia, where oil and gas revenue forms the backbone of the federal budget. In March alone, earnings from the sector had already declined by 17% compared to the previous year.
Meanwhile, Trump defended his policies in a series of posts on Truth Social, dismissing recession warnings and celebrating falling prices. “Oil prices are down, interest rates are down (the slow moving Fed should cut rates!), food prices are down, there is NO INFLATION,” he wrote. “The long time abused USA is bringing in Billions of Dollars a week from the abusing countries on Tariffs that are already in place.”
He also targeted China, which announced retaliatory tariffs in response. “The biggest abuser of them all, China, whose markets are crashing, just raised its tariffs by 34%,” Trump said. “They’ve made enough, for decades, taking advantage of the Good OL’ USA! Our past ‘leaders’ are to blame for allowing this, and so much else, to happen to our Country.”
Global benchmarks also took a hit — WTI crude dropped to $60 per barrel, and Brent crude sank to $64. Analysts fear the ongoing volatility could push the world economy toward a potential recession if stability doesn’t return soon.
