The lower revenues, a result in part of President Trump’s trade war, could prove more damaging to the Russian economy than the penalties the United States and its allies have already imposed.

Russia escaped Trump’s tariffs, but it could still suffer if the price of oil, the Kremlin’s economic lifeline, falls.

Kremlin spokesman Dmitry Peskov has admitted officials were closely monitoring what he described as an "extremely turbulent, tense" situation.

A positive correlation between global oil benchmark Brent crude and U.S. equities has reemerged in 2025, reflecting concern about the slowing economy and the impact of U.S. President Donald Trump's trade wars.

The slide in crude prices signals deteriorating confidence in the strength of the economy. U.S. oil prices continued to sink Wednesday morning, falling to about $56 a barrel as China said it would match President Trump’s tariffs blow for blow.

The recent plunge in oil prices won’t be a game changer for Russia’s ability to finance its war machine as rising revenue from non-energy sectors and rainy-day reserves help offset losses.

Oil prices fell on Friday and were set to drop for a second week on concerns prolonged trade war between the United States and China, the world's largest economies, will crush crude consumption as their dispute curtails economic growth.

The price fell to $58.60 in morning trading in London and hovered close to $60 throughout the day, marking a roughly 18 per cent drop over the past five days as Trump has pushed ahead with tariff plans.

The shape of the oil futures curve is rapidly shifting into contango — a fresh sign that traders are hastily dialing back their expectations for global demand this year.