Get all your news in one place.
100's of premium titles.
One app.
Start reading
Fortune
Fortune
Christiaan Hetzner

Putin’s budget faces 'catastrophe' after price cap spells doom for Russian oil exports

(Credit: Mikhail Klimentyev—Sputnik/AFP via Getty Images))

The West's price cap on Russian crude oil could have a catastrophic effect on Vladimir Putin’s finances and force the pariah state into imposing austerity measures this year.

The price of the “Urals” benchmark grade of crude oil exported from Russia has been falling steadily since the cap went into effect on Dec. 5. At that level, production can continue, but at a level much closer to extraction costs. thereby greatly diminishing Russian profits.

Sign up to read this article
Read news from 100's of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member? Sign in here
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.