Overview

• President Trump's aggressive tariff strategy, particularly targeting China, has contributed to a sharp 25% decline in global oil prices since April 2, 2025.
• Russia's oil revenues are projected to fall by $50 billion annually, further weakening an economy already burdened by inflation and high defense spending tied to the Ukraine conflict.
• Efforts to redirect oil exports to alternative buyers like India and China have provided limited relief due to persistently low crude prices.
• Russian liquefied natural gas (LNG) exports are also experiencing significant declines, compounding losses in the energy sector.
• The Kremlin's economic vulnerabilities are heightened as global energy market shifts and U.S.-China trade tensions continue to disrupt trade flows.