Big problems for Russian economy. Oil prices plummet and 'shipping costs surge'

Urals oil is a reference oil brand used for pricing of the Russian export oil mixture. It is a mix of heavy sour oil from the Urals and the Volga region with light oil from Western Siberia.

Ural crude oil price chart on March 6, 2025:
 

Please read:

Russian economy meltdown as oil prices plummet and 'shipping costs surge'

Russia’s Oil and Gas Revenues Dropped by 18% in February, Oilprice.com, March 5, 2025

Russian crude oil prices have fallen below US$60 a barrel, in a major blow for the Kremlin. Revenues from oil and gas are a major source of income for Putin's regime, accounting for between a third and half of Russia's federal budget over the last decade.

The money from these fossil fuels plays a vital role in helping Russia to finance its war in Ukraine. The war is costing Putin over £262million a day, according to a report published last year by a researcher from Germany’s Stiftung Wissenschaft und Politik(SWP). That figure seems only likely to increase, with the Kremlin having allocated £117billion for defence spending in 2025 - an increase of 25% on last year.

For further reading, please read: 

More bad news for the oil seller Russia: Oil markets brace for 2025 collapse as pressures mount on all sides

OPEC+ Caves to Trump Pressure—But Throws Just a Bone, Oilprice.com, March 5, 2025

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