Russia, which relies heavily on oil, energy, and mineral exports, is facing the threat of a major economic crisis if the current decline in oil prices continues. On Monday, Moscow raised concerns as oil prices dropped to around $60 per barrel, with Russia’s Urals crude falling even further, coming close to the $50 mark, amid severe market instability. The primary trigger for this downturn is Donald Trump’s retaliatory tariffs, which have caused global markets, including oil, to crash. Making matters worse, China, the world’s second-largest economy, responded with countermeasures aimed at Washington.

Oil and gas are the major sources of income for Russia’s federal budget. In March alone, revenue from this sector dropped by over 17 per cent compared to last year. And that decline came before April’s sharp slide triggered by Trump’s tariff move.

When asked about declining oil prices and their effect on Russia’s economy, Kremlin spokesperson Dmitry Peskov acknowledged, "Of course, this indicator is very important for filling the budget. Our authorities are very closely monitoring the situation, which is currently extremely turbulent, tense, and emotionally charged. We aim to take measures in order to minimise the consequences of this economic storm."

As per a Bloomberg report, Russia's Urals oil was priced at just $52 per barrel on Friday at the Primorsk port in the Baltic Sea, and by Monday, it had dropped even closer to the $50 mark. In less than 72 hours, global markets have suffered massive losses amounting to trillions of dollars, raising serious concerns among investors about a potential recession. Meanwhile, WTI Crude or Texas crude, the U.S. oil benchmark, has slipped to $60 per barrel, and Brent Crude prices have fallen to $64 per barrel on the international market.

President Trump reinforced his position, stating, "Oil prices are down...there is no Inflation," and dismissed warnings from economists about a possible recession. On his platform, Truth Social, he claimed, "Oil prices are down, interest rates are down (the slow-moving Fed should cut rates!), food prices are down, there is NO INFLATION, and the long-time abused USA is bringing in Billions of Dollars a week from the abusing countries on Tariffs that are already in place."

He specifically called out China, blaming them and former U.S. leaders for past economic issues, saying who"allowed for this to happen". He penned on Truth Social, "This is despite the fact that the biggest abuser of them all, China, whose markets are crashing, just raised its Tariffs by 34%, on top of its long-term ridiculously high Tariffs (Plus!), not acknowledging my warning for abusing countries not to retaliate. They've made enough for decades, taking advantage of the Good OL' USA! Our past "leaders" are to blame for allowing this, and so much else, to happen to our Country. MAKE AMERICA GREAT AGAIN!"

On Wednesday (U.S. time), Donald Trump announced that the U.S. would impose reciprocal tariffs on countries that place tariffs on American goods and a 10 per cent tariff on all nations. Since that announcement, global stock markets have been plunging without signs of recovery, and the same sharp decline is seen in oil, crude, and commodities markets.