>As Russia holds direct peace talks with Ukraine for the first time in months, the Kremlin’s most potent fuel for the war, oil revenue, is under mounting strain.
>The price of Russian oil, the country’s primary export, has declined under the weight of surging global supplies and Western sanctions related to the war. Last year, Russia’s oil and gas revenue fell by almost a quarter, according to the Finance Ministry. The Kremlin is resorting to tax increases and deficit spending to bridge the gap.
>So far, there is little sign that the economic strains, and any discontent they generate among business leaders and the public, will be enough to change President Vladimir V. Putin’s calculations on the war. Trilateral negotiations involving Russia, Ukraine and the United States are set to continue on Sunday in Abu Dhabi, the capital of the United Arab Emirates.
>But with the economy stagnating and the Kremlin reaching the limit of what it can squeeze from it, the Russian people will have to bear more of the burden of a war whose costs exceed about $170 billion a year.
>Russia’s oil trade has been battered by two forces. Oil prices have declined since April, after the Organization of Petroleum Exporting Countries decided to gradually increase production after years of cuts. The Russian oil industry has also been hit in recent months by new Western sanctions and the heavier enforcement of existing ones.
>“Had it not been for this noticeable decrease in oil prices,” he said, “all these measures would have been far less effective.”
>Discounts on Russian oil have grown drastically. The economy ministry said this month that the average price of Russian oil was $39 per barrel in December, down from more than $57 in August.
File under: “Russia’s economy is going to collapse any day now”
macross1984 on
Good. Now Russia will need to think hard whether its economy can handle the stress before it implode again.
just_a_pawn37927 on
Can’t happen fast enough!!
CzechUsOut on
This is something that Trump has done very well. Trumps gone after Russia’s shadow fleet and threatened sanctions on anyone buying sanctioned Russian oil. It’s been quite effective and might just be what brings this war to an end.
Capturing ships, enforcing sanctions seems to be an actual good thing coming from this administration? Trump really wants that Nobel peace prize. If he can solve this conflict then maybe it will be on the table.
whisperworks on
This is why I’m not mad about Maduro (still dumb as hell but at least it helps check Putin) and the USs pursuit of Russias shadow fleet
9 Comments
>As Russia holds direct peace talks with Ukraine for the first time in months, the Kremlin’s most potent fuel for the war, oil revenue, is under mounting strain.
>The price of Russian oil, the country’s primary export, has declined under the weight of surging global supplies and Western sanctions related to the war. Last year, Russia’s oil and gas revenue fell by almost a quarter, according to the Finance Ministry. The Kremlin is resorting to tax increases and deficit spending to bridge the gap.
>So far, there is little sign that the economic strains, and any discontent they generate among business leaders and the public, will be enough to change President Vladimir V. Putin’s calculations on the war. Trilateral negotiations involving Russia, Ukraine and the United States are set to continue on Sunday in Abu Dhabi, the capital of the United Arab Emirates.
>But with the economy stagnating and the Kremlin reaching the limit of what it can squeeze from it, the Russian people will have to bear more of the burden of a war whose costs exceed about $170 billion a year.
>Russia’s oil trade has been battered by two forces. Oil prices have declined since April, after the Organization of Petroleum Exporting Countries decided to gradually increase production after years of cuts. The Russian oil industry has also been hit in recent months by new Western sanctions and the heavier enforcement of existing ones.
>Because of the current global oversupply, buyers now have more alternatives to Russian crude. This allows them to either walk away entirely or demand significantly higher discounts to compensate for the risk of handling goods hit with sanctions, said Sergey Vakulenko, an [energy expert at the Carnegie Endowment for International Peace](https://carnegieendowment.org/russia-eurasia/politika/2025/08/russia-war-gasoline-problem?lang=en¢er=russia-eurasia).
>“Had it not been for this noticeable decrease in oil prices,” he said, “all these measures would have been far less effective.”
>Discounts on Russian oil have grown drastically. The economy ministry said this month that the average price of Russian oil was $39 per barrel in December, down from more than $57 in August.
>Adding to Moscow’s problems, Ukraine has been using drones since November to [strike](https://www.reuters.com/business/aerospace-defense/ukraine-hits-russian-shadow-fleet-tanker-mediterranean-first-time-sbu-source-2025-12-19/) Russia-linked tankers in the Black Sea and the Mediterranean. The Ukrainian military has also been attacking Russian refineries. That has contributed to fuel crises in several regions, forcing the government to temporarily ban the export of oil products.
Full article with paywall removed: [https://archive.is/20260131100606/https://www.nytimes.com/2026/01/31/world/europe/russia-economy-oil.html](https://archive.is/20260131100606/https://www.nytimes.com/2026/01/31/world/europe/russia-economy-oil.html)
Have a nice day.
[deleted]
File under: “Russia’s economy is going to collapse any day now”
Good. Now Russia will need to think hard whether its economy can handle the stress before it implode again.
Can’t happen fast enough!!
This is something that Trump has done very well. Trumps gone after Russia’s shadow fleet and threatened sanctions on anyone buying sanctioned Russian oil. It’s been quite effective and might just be what brings this war to an end.
Gold, on the other hand….
https://www.bloomberg.com/news/articles/2026-01-20/russia-gains-216-billion-in-gold-rally-replacing-lost-assets?embedded-checkout=true
Capturing ships, enforcing sanctions seems to be an actual good thing coming from this administration? Trump really wants that Nobel peace prize. If he can solve this conflict then maybe it will be on the table.
This is why I’m not mad about Maduro (still dumb as hell but at least it helps check Putin) and the USs pursuit of Russias shadow fleet