RUSSIA Posts Massive Financial Loss as Oil & Gas Collapses & Expenditure on War in Ukraine Soars

2 Views

0 Likes

May 31, 2024

Video Summary

The Russian economy has been facing significant challenges in recent years, with the country’s reliance on oil and gas exports being heavily impacted by Western sanctions and declining global demand. In this video, we will explore the latest official figures from the Russian Ministry of Finance, which show a concerning trend of decreasing oil and gas revenue.

According to the figures, Russia’s total oil and gas revenue has dropped by 45% compared to 2021, before the invasion of Ukraine. This is despite the country’s oil prices increasing due to global market fluctuations. The decline can be attributed to the decrease in demand for Russian oil and gas, as many countries have stopped purchasing from Russia.

In contrast, Russia’s non-oil and gas revenue has seen a significant surge, with a 133% increase in the first four months of 2024. However, this increase is largely due to the Kremlin’s efforts to support domestic companies through state-sponsored businesses, which is not a sustainable long-term solution.

The Russian government has been spending a vast amount of money on the war in Ukraine, with a net loss being posted every month. This expenditure is being funded by Russia’s reserves, which will eventually run out if the current situation does not change.

The Russian economy is at risk of falling into recession or even depression if the war in Ukraine continues, as many companies will struggle to survive without sufficient revenue. The long-term viability of these companies is also questionable, as they will need to adapt to a post-war economy and find new customers.

Overall, the figures from the Russian Ministry of Finance demonstrate a concerning trend of decreasing oil and gas revenue, offset by increasing non-oil and gas revenue through state-supported businesses. However, this solution is not sustainable in the long term, and the Russian government’s expensive war efforts will ultimately lead to a financial crisis if not addressed.