Global oil prices have tumbled, as China slapped retaliatory tariffs on the US after Donald Trump’s sweeping levies took effect. Heavily reliant on oil sales, the Russian economy may now come under pressure.
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00:00A spill in oil prices could cause a big hole in Russia's economy.
00:05Currently, oil is at its lowest point in the last four years.
00:10After a week long and heavy with tariff announcements, the impact of these levies is starting to show.
00:17Elvira Nabiolina, chief of Russia's Centrobank, was quoted as saying that the drop in oil prices
00:23is triggered by the US tariff regime and poses a risk to Moscow.
00:28She said if such tariff wars continue, it usually leads to a decline in global trade,
00:34the global economy and possibly the demand for our energy resources.
00:39As of Monday, crude prices dropped 14%.
00:42This can have massive implications for the Russian economy.
00:46But the impact is not limited to just Moscow, it may trickle down to other OPEC-plus countries.
00:52Such a turbulence in oil markets sparked recession fears, including for the Kremlin,
00:57according to spokesman Dmitry Peskov.
01:01It has to do with the decision of the United States to impose tariffs on most countries of the world
01:06and of course now, if you look at the situation in the global economy,
01:10it is rather very tense and full of negative expectations.
01:13Our economic authorities are monitoring the situation closely
01:17and of course are doing and will do everything necessary
01:20to minimize the consequences for our economy from this international economic storm.
01:26The Russian economy was continuously hit by Western sanctions since the start of its war in Ukraine in 2022.
01:33The sudden and sharp decline in the oil prices is threatening its foundations.
01:38As a potential all-out trade war between the United States and China spooked markets,
01:42last week the OPEC-plus oil-producing countries agreed to up their production despite oil prices sinking.