Trump's trade policy creates economic turmoil for Russia
Donald Trump's trade policy, instead of aiding Russia, is causing significant economic challenges for the country. The drop in oil prices and the ruble's depreciation threaten its financial stability. The Kremlin is trying to mitigate the effects, but the situation remains tough.
"The Moscow Times" writes that U.S. President Donald Trump's trade policy, initially seen as an opportunity for Russia, is now causing unexpected economic issues.
The decline in Brent crude oil prices to $86 CAD per barrel, and Urals, Russia's key export blend, reaching nearly $68 CAD per barrel, could seriously damage the Russian economy.
The Russian newspaper RBK Daily warns that the current situation could seriously threaten Russia's GDP and state budget.
According to "The Moscow Times," Trump's trade war with the entire world is having harsh and unintended consequences for Moscow.
Remember that although the new American tariffs covered almost every country worldwide, Russia was omitted. The White House declared that the sanctions had effectively reduced trade between the U.S. and Russia to nearly "zero".
The Kremlin concerned
The Kremlin, worried about the drop in oil prices, is trying to counteract the economic impacts, but it remains challenging. Russia, whose budget heavily depends on oil and gas revenue, is facing a significant challenge.
With falling oil prices and ongoing sanctions, Russia is dealing with increasing economic isolation.
The Kremlin had hoped for sanctions relief and improved relations with the U.S., but Trump's policy has had the opposite effect. Russian authorities are trying to protect the country from the effects of new American tariffs, but the situation remains tense.
