Trump's trade policy: An unexpected blow to Russia's economy
Donald Trump's trade policy, instead of aiding Russia, is causing significant economic issues for the country. The fall in oil prices and the depreciation of the rouble threaten the nation's financial stability. The Kremlin is attempting to mitigate the effects, but the situation is proving challenging.
US President Donald Trump's trade policy, initially perceived as a potential benefit for Russia, is now resulting in unforeseen economic difficulties, writes "The Moscow Times".
Reducing Brent crude oil prices to approximately £50 per barrel, alongside Urals, Russia's key export blend, reaching nearly £40 per barrel, could seriously harm the Russian economy.
The Russian newspaper "RBK Daily" warns that the current scenario could lead to serious issues for Russia's GDP and the state budget.
According to "The Moscow Times", Trump's trade war with the entire world inflicts a severe and unintended setback on Moscow.
It is worth remembering that although the new American tariffs encompassed almost every country globally, Russia was not included. The White House stated that the sanctions had effectively reduced trade between the US and Russia to nearly "zero".
The Kremlin concerned
The Kremlin, troubled by the decline in oil prices, is striving to counteract the economic repercussions, but the situation is difficult. Russia, with its budget heavily reliant on oil and gas revenue, faces a considerable challenge.
Amidst falling oil prices and ongoing sanctions, Russia is dealing with increasing economic isolation.
The Kremlin had hoped for relief from sanctions and improved relations with the US, but Trump's policy has had the opposite effect. Russian authorities are endeavouring to shield the country from the impact of new American tariffs, but the situation remains tense.
