Global tariffs trigger Russian economic woes and military cutbacks
The Russians felt the crash on global exchanges, which occurred on Monday, April 7, due to tariffs imposed by U.S. President Donald Trump. Not only did Russian company stocks suffer, but oil prices also dropped. Bloomberg indicates that this will impact Russia's military capabilities and limit the strength of attacks on Ukraine.
It is a black day on the world markets. Since the morning of April 7, stock indices on exchanges worldwide have been plummeting. "Red Monday" affected, among others, companies in the United States, China, and also companies in the European Union, including Poland.
Russian companies also recorded a significant decline. The Moscow stock exchange was dominated by the colour red. However, this is not the only problem for Russia's economy. Along with the stock market declines, the price of Russian crude oil significantly fell.
Bloomberg reports that the price per barrel is about CAD 68 today. This is the lowest figure in 2025 and the lowest in 21 months. Such a sudden drop will have significant consequences for Russia's budget.
Will Russia have to limit attacks on Ukraine? it's an effect of falling oil prices
According to Bloomberg experts, the Kremlin will be backed into a corner. To balance budget spending, authorities in Moscow must cut military funding. This could mean that plans to increase funds allocated for the war with Ukraine might not materialize.
Experts point out that to balance the budget, a barrel of Russian oil should cost around CAD 81. This means that losses will be significant and difficult to patch.
The stock market crash and the fall in oil prices are the effects of the tariffs imposed by the administration of Donald Trump. The American politician imposed tariffs on products from, among others, China, Switzerland, and the European Union. Russia was not affected by the tariffs, but Trump's decision significantly impacted the local economy.
