'Good news for Ukraine': economist on fallout from Trump’s tariff policy

He said this on Espreso TV channel.

“As for the consequences of Trump’s tariff policy for us, it’s actually a positive thing. After Trump imposed tariffs on oil, the price of a barrel of Brent crude fell from $72 to $64. That is, yesterday the markets closed at $64 per barrel. After Trump’s statements overnight, today Brent oil is already priced at $60 per barrel.

For reference: Urals oil today costs $49 per barrel. That is approximately the production cost of Russian oil. The Russian budget is based on an oil price of $69 per barrel. So currently, Russia is losing $20 on each barrel,” Pendzin explained.

According to the economist, the Russian Ministry of Finance has started selling yuan from the National Wealth Fund to cover the deficit. These yuan will last the Russians for a maximum of six months.

“In 2023, Russia appealed to China requesting a stabilization loan in yuan. Officially, China declined. So, as of today, there is no agreement between the Russian Federation and China on a stabilization loan. This means the Russians cannot borrow anything from China. The only resource they have left is the National Wealth Fund, which they will now use.

So, Russia will catastrophically lack funds to purchase weapons from China. Such a low oil price is undoubtedly a positive development, as it deprives Russia of the resources to continue waging war,” Pendzin emphasized.

• On April 9, oil prices dropped to their lowest level in the last four years amid concerns about demand caused by U.S. tariffs against China.
• U.S. President Donald Trump stated that his global tariff policy is a “war with the world,” but later backtracked, saying it is “not a war at all.”