Painful Ricochet: The Russian Economy Takes A Hit
1- 6.04.2025, 8:29
- 10,816
After the U.S. tariff strike.
Russia was among the few countries that avoided new direct tariffs from the United States. However, the consequences of the global tariff war launched by U.S. President Donald Trump have still had a noticeable impact on the Russian economy, writes Newsweek.
Collapse in Russian Stock Markets.
The escalation of trade disputes triggered a sharp decline in Russian stock markets. Over the past week, the MOEX Russia Index, which tracks the performance of the 43 largest publicly traded companies, has dropped by 8%—its biggest fall since September 2022, when the market reacted to the announcement of mobilization in Russia.
Notably, shares of major players have suffered significant losses: Sberbank (-5.2%), Gazprom (-4.9%), Mechel (-7%), Novatek (-5.4%).
Analysts Expect Oil Prices to Drop.
Experts link the decline to the anticipated slowdown of the global economy due to trade restrictions. This could lead to lower demand for energy resources and, consequently, a drop in oil prices—one of Russia’s primary sources of income.
Even in March, the average price of Russian Urals crude oil fell to $58.99, which is below the minimum threshold required to meet budgetary obligations.
Additional pressure came from news that OPEC plans to sharply increase oil production in May. The organization aims to compensate for falling prices by boosting sales volume.
However, in an oversaturated market, this move could lead to an even steeper decline in oil prices.
The decline in export revenues poses serious risks to the Russian economy, especially given the high budgetary burden caused by military spending and the need to service national debt.
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