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Analysts See Ruble Upswing Ending as Urals Slump Hits Budget

Market outlooks point to softer ruble dynamics as weak Urals pricing undermines budget inflows.

Overview

  • After a 31% gain against the dollar in 2025, the ruble’s support from high rates and year‑end tax flows is fading, according to new assessments.
  • Forecasts for 2026 center on a gradual depreciation to roughly 90–95 per dollar, with scenarios spanning 75–100 and a possible key rate cut toward about 12% by year‑end.
  • Urals fell to around $34 per barrel on some December days with a roughly $27 discount to Brent, tied to U.S. sanctions on Rosneft and Lukoil, tanker attacks, and softer global prices.
  • Weaker oil prices and a strong currency are set to compress January oil‑tax receipts, with Reuters estimating NDPI near 380 billion rubles versus 840 billion a year earlier after an 11‑month deficit of 4.3 trillion rubles.
  • Several analysts expect the Urals discount to narrow over coming months, potentially lifting the grade toward about $50 per barrel even without Brent gains, while Russian output is seen stable given field profitability.