Putin is facing a growing economic crisis(Image: Getty)Russian exports of crude oil have plummeted to a two-year low, amplifying the economic turmoil within the nation.
The sales of oil and gas serve as a financial bedrock for the Kremlin, providing the federal budget with billions. Startling figures reveal that fossil fuel commerce constitutes an overwhelming 30% of the Russian state revenue stream, bankrolling Putin’s aggressive campaign in Ukraine. Yet, this crucial economic artery has been dealt a severe blow, with export rates nosediving and key earnings evaporating.
Current finance stats indicate average flows shrinking by 170,000 barrels per day to a mere 3.24 million, yanking down the export dollar amount by 4% to US$1.2 billion (£844m) weekly.
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Kyrylo Shevchenko, ex-head of Ukraine’s National Bank, observed: “Despite OPEC+ output hike, Moscow’s focus on price over volume signals production struggles.”
Bloomberg also reported that tanker loads of Russian crude saw a deficit of 5.6 million barrels in the week preceding June 1, compared to the week prior, reports the Express.
Amidst these developments, the OPEC+ conglomerate recently resolved to ramp up oil production once more.
Tankers are being loaded up with less oil(Image: SCF Group)The collective’s deliberations concluded with an agreement among the eight member states to augment production by 411,000 barrels per day (bpd) come July, marking the third consecutive month of identical increments.
This escalation in oil production spells further woes for the Kremlin, potentially triggering a slide in crude prices.
A senior British military adviser highlighted that Russia’s economic landscape is experiencing heightened strain as the conflict wears on, now entering its fourth year.
Lieutenant Colonel Joby Rimmer revealed at an OSCE meeting in Vienna last week that the Kremlin has suffered a whopping £330 billion loss in energy revenues due to sanctions. He pointed out that defense spending has skyrocketed to £109 billion, accounting for 40% of the Russian government’s expenditure in 2025.
The senior military officer noted that, for the first time in post-Soviet history, defense spending now surpasses social spending. The Kremlin is gearing up to hike gas prices for industry to compensate for losses at Gazprom, which has also witnessed a drastic drop in exports since Russia’s full-scale invasion of Ukraine in February 2022.
Last year, the energy behemoth reported a staggering net loss of 1.076 trillion roubles (£9.5bn).
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