Russia on Edge: Oil Prices and Global Trade Tensions

Russia is closely monitoring oil price fluctuations due to their significant impact on its economy. Recent global trade tensions, particularly U.S.-China tariffs, have exacerbated price declines. Oil and gas contribute substantially to Russia's budget, and falling sales are worrisome for economic authorities. U.S. tariff hikes may prolong lower prices.

Oil prices are crucial to Russia's financial state, and they have sparked concern amid a volatile global climate. On Monday, a Kremlin spokesperson described the situation as 'very tense,' following a 7% plunge in oil prices due to China's tariffs on U.S. goods, intensifying trade tensions.

Russia, which relies heavily on oil and natural gas sales, saw a 10% drop in first-quarter revenues to 2.64 trillion roubles ($30.59 billion) as prices fell globally. Kremlin spokesman Dmitry Peskov highlighted the market's turbulence, attributing it partially to U.S. President Donald Trump's international tariffs.

The OPEC+ alliance, including Russia, plans to increase output, further influencing the downward trend. Russia's central bank warned that U.S. tariff actions might slow the global economy, potentially keeping oil prices low longer-term. Economic authorities are taking measures to mitigate impacts on Russia's economy.

(With inputs from agencies.)