Vladimir Putin: This ally who wants to steal all his money
Russia may no longer be able to fund the war in Ukraine if Saudi Arabia decides to increase its oil production while keeping prices relatively attractive.
In recent months, Riyadh has expressed frustration with OPEC member countries for refusing to cut oil production in an effort to drive the price per barrel up to 100 dollars.
Saudi oil companies are now seeking to sell their production directly at a competitive price in order to maintain their position as the world’s largest oil exporter.
If this strategy were to be adopted, Russia would be severely impacted, as half of its national revenue comes from the sale of gas, hydrocarbons, and oil. This vast financial resource is directly used to fund the war in Ukraine.
According to Mikhail Krutikhin, a Russian energy analyst based in Norway, such a move would pose "an enormous risk" to Russia’s state budget, which relies heavily on gas and oil exports for income.
"So we have to sit back now and wait — stock up on the popcorn", he told Politico.
(QG - Source : Politico / Picture: © Unsplash)