Expert: The Kremlin Is Shocked By New Oil Prices

• 11.04.2025, 16:10

They are choosing between two options.

The fall in oil prices is putting pressure on Russia. If this trend continues, then the aggressor country will really start having problems. They need high oil prices.

Economic observer Vyacheslav Shiryaev told 24 Kanal about this, noting that in 2020, there was a moment when oil prices were negative, and then remained at $20-30 per barrel for several months. Then Russia could count on the national welfare fund. Now the situation is different.

What will happen if oil prices are low

As Shiryaev noted, Russia's spending on the war is literally trillions of rubles. If oil prices are low for a long time, then it will have problems with money for military operations.

“Cutting spending on the war is a loss of advantage. For now, he wants to continue to put pressure. But then he will have to choose: either make a deal with Trump or continue the war. If we leave the war, it is unclear what to do with the domestic political situation and the economic system, which is too tied to the money that the budget allocates for military production,” Shiryaev said.

If Putin wants to continue the war with low oil prices, he will have even bigger problems. The reserves from the national welfare fund are quite low. Then he will have to print money. And this is the path to hyperinflation.

“Every year the fund is shrinking. Then we will have to borrow money. Independent investors do not want to buy bonds. Then we will have to print “wrappers.” Therefore, a decrease in oil prices is definitely a problem with the budget and hyperinflation,” Shiryaev noted.