The price of Russian oil has fallen below $40: Yelchenko on the consequences of sanctions for the Russian Federation.

According to ТСН: Currently, public information about the full consequences of sanctions against Russia's gas and oil companies is limited, but the first signs are already visible — the price of Russian oil has fallen below $40 per barrel.

Noting changes in Russian diplomacy

This was stated on air by the head of the research area in international politics, Extraordinary and Plenipotentiary Ambassador of Ukraine to the USA in 2020-2021, Volodymyr Yelchenko.

In his opinion, modern Russian diplomacy is quickly degrading and increasingly resembles the worst practices of Soviet times.

“Modern Russian diplomacy is rapidly sliding back to the worst times of the Soviet era. However, even then, Russian diplomats did not allow themselves open rude remarks towards the West. This only indicates that they are nervous, as everything is not going as they would like,” said Yelchenko.

Sanctions and their impact

The diplomat emphasized that Moscow hoped to use the policy of US President Donald Trump to start negotiations on favorable terms for themselves.

“The Russians hoped that with Donald Trump's careless policy, they could start a negotiation process on terms that suit them. However, it was Donald Trump who imposed sanctions against Russian gas and oil companies,” Yelchenko emphasized.

He added that although the complete picture of the impact of the sanctions is still being formulated, the drop in oil prices is already a troubling sign for the Kremlin.

“Today, the price of Russian oil has already dropped below $40 per barrel. This means we are approaching a point where it will not only be unprofitable for the Russian Federation to extract oil, but it will also be unclear what to do with it,” explained the diplomat.

Russia's budget and consequences

Yelchenko pointed out that about 50% of the Russian state budget depends on oil revenues, most of which are directed towards the war against Ukraine.

“Therefore, I think we will see the consequences very quickly,” he concluded.

It was also previously reported that the Armed Forces of Ukraine struck the oil terminal 'Tamaneftgaz'.

Israeli diplomat Arkadiy Mil-Man noted that if world oil prices decrease by $10-15, this could lead to catastrophic consequences for the Russian economy.

Thus, the economic situation in Russia, especially in the oil and gas sector, remains tense. The decline in oil prices and the impact of sanctions are already reflected in the state budget, threatening funding for military actions. The situation clearly requires the attention of the global community, as economic difficulties may have serious consequences not only for Russia but also for the region as a whole.