The decline in Urals oil prices will significantly impact the financial capabilities of the Russian budget, but it will not be able to stop the war. U.S. President Donald Trump, frustrated by the slow progress of peace negotiations in the conflict between Russia and Ukraine, may use sanctions on key Russian export goods as a tool to pressure Putin.
This is reported by Finway
Possible Sanctions on Oil Exports
The introduction of restrictions on oil exports from the ports of Ust-Luga, Primorsk, and Novorossiysk could lead to a reduction in maritime oil exports by 50-75%. This, in turn, could decrease Russia’s budget revenues by 15%.
Gas Prices for China
Additionally, the Russian government plans to further reduce gas prices for China, despite the enormous losses incurred by Gazprom. In 2024, the cost of Gazprom’s supplies to China was $267.6 per 1,000 cubic meters, which is 30% less than what European and Turkish customers paid. By 2025, the price of Russian gas for China will drop to $247.3, while for European and Turkish buyers it will rise to $403. For 2026, the Russian government plans to lower the gas price for China to $241.8.