At present the price of Brent crude oil is $28 per barrel, while it was $114 per barrel in June 2014. This price fall by three-quarters is of great importance for the Russian economy and its policy toward Ukraine. The only rational option for the Kremlin is to wind down the conflict with Ukraine.Russia is a petrostate. When the oil price was high, oil and gas accounted for two-thirds of Russia’s exports, half of its state revenues, and one-fifth of its GDP. At this oil price, Russia’s exports fall by half to $260 billion. State finances do not suffer that …read more
Source: Atlantic Council
