Russian oil is trading at an unprecedented discount, delivering an increasingly severe blow to the Russian Federation's financial base. The average price for the Urals grade dropped to approximately $37.50 per barrel in January.
According to The Telegraph, as reported by Hvylya, the price of Russian crude has fallen nearly 42% below the Brent benchmark. This widening gap is a direct result of intensified sanctions pressure, logistical complexities, and a sharp reduction in purchases by key clients, most notably India.
"Indian imports of Russian crude oil fell to 1.1 million barrels per day during the month, the lowest level since November 2022," the publication's analysts noted.
This creates a critical situation for the aggressor's budget, as oil revenues remain the primary source of war financing. The situation has been further exacerbated by US sanctions against Rosneft and Lukoil, alongside new EU restrictions on maritime transport.
"If this continues, it will create significant problems for Putin, as a key part of the strategy to keep the domestic economy afloat involves utilizing high revenues from oil exports," explained Steffen Dietel of Altana Wealth.
Experts observe that Russian oil shipments have already declined significantly, with budget revenues from sales falling to their lowest level in more than five years in January. While Russia's economy is entering its deepest crisis in 20 years, the Kremlin continues to demonstrate a readiness to persist with the war despite depleting resources.