Oil prices: Russia prepares for a hit from USA tariffs
USA President Donald Trump’s torrent of tariffs may not have directly affected Russia, but they could deal a painful blow to its economy through the new oil prices.
The problem is that Moscow depends on oil and gas exports.
“While Trump’s goal in imposing tariffs was probably not to bring down oil prices, low oil prices will have a negative long-term impact on the Russian economy,” said Kari Liuhto, a professor of international business at the University of Turku in Finland. “However, in order to influence the actions of the Russian leadership, oil prices will have to remain low for several years.”
US billionaire Ray Dalio has warned that the US is "very close to a recession" due to Trump's tariffs and the stock market turmoil, and could face "something much worse than a recession".
"The fall in oil prices due to the expected US recession will be significant and will have a big impact on Russia's oil revenues," said Eric Golson, an expert on economic warfare and associate professor of economics at the University of Surrey in the UK.
Oil prices have fallen by about 25% compared to last year's average, Golson said, which corresponds to an expected annual loss of revenue for Russia of $50 billion.
According to Liuhto, Russia is managing to partially ease the pressure of oil sanctions by selling crude oil to third countries, which is then purchased by Western countries in the form of refined petroleum products.
Source: Newsweek.
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