Tariff Turbulence: Impact of U.S. Measures on Russian Oil and Economy

Global oil prices have sharply declined due to U.S. President Trump's tariffs, posing a risk to the Russian economy. The central bank of Russia is analyzing impacts, acknowledging potential threats from tariff wars on global trade and energy demand, with forecasts of prolonged lower oil prices.

A sharp decline in global oil prices, driven by U.S. President Donald Trump's announced tariffs, poses a significant risk to the Russian economy, according to Elvira Nabiullina, the governor of Russia's central bank, as reported by the state TASS news agency.

Nabiullina stated the central bank is carefully analyzing the ripple effects of the tariffs, though she noted that a technical budget rule is expected to mitigate budgetary implications. Trump's April 2 announcement of 'reciprocal tariffs' on imports led to a dramatic 14% and 15% drop in Brent and WTI prices, respectively.

The central bank noted the ongoing escalation of tariff wars could reduce global trade and demand for energy resources, thereby influencing economic growth and inflation. Oil prices are forecast to average $65 per barrel in 2025 and $60 per barrel in 2026, assessments that will be revisited at the April 25 board meeting.

(With inputs from agencies.)