Russia benefits little by the recent rise of its prices oil Due to the strengthening of her currency, ravikeeping the revenue of the Kremlin under pressure.
As hostilities between Iran and Israel raised global oil prices, the Russian argon of Urals increased to over $ 60 a barrel on June 13, according to Argus Media Ltd. This meant that he had recovered all losses except 10% of his losses since the beginning of the year. However, the country’s exporters earned 4,957 rubles from any barrel that was sold abroad that day, according to Bloomberg calculations based on the official exchange rate from the country’s central bank. This is still almost 30% below the level observed at the beginning of 2025.
This puts Russia at a disadvantaged position against some of its partners in OPEC+, such as Saudi Arabia, which has a coin connected to the dollar. It also leaves the Kremlin, which depends on oil and gas for about one -third of its revenue and has the most expenses in rubles, with less money left over.
Russia is charged with high spending on war with Ukraine and could have a deficit in its budget this year, which is superfluous than the initially expected. For the country’s oil producers, part of the compression is tempered by government subsidies, but a stronger ruble still means lower export profitability.
The ruble won almost 23% at 78.72 per dollar, according to calculations based on data from the Central Bank of Russia. It has been resurrected by various factors, including optimism about the perceived defrosting US policy over Moscow and the Bank of Russia, which maintains its main interest rate close to historically high levels.
While the current price of oil allows Russian companies to invest in production, ruble power makes life “more difficult” to industry, Deputy Prime Minister Alexander Novak said on Wednesday, according to local media. Last month, Igor Sechin, chief executive of the largest Russian Rosneft PJSC oil production and export company, said the actions of the Central Bank do not take into account the activities of his company and underestimate the value of oil in rubles.
However, the return of the currency to last year’s low levels is unlikely at this time, according to analysts.
“External factors, including high interest rates and rising oil prices, prevent a sharp decline,” Freedom Finance Global said in a research note. It sees the return of the coin to the area of 90 to 100 rubles per dollar only if the prices of the goods are reduced again and inflation is accelerated, they said.