The falling oil prices combined with the extra-budgetary spending requirements needed to support ailing businesses means that Russia’s National Welfare Fund will most likely be empty much earlier than previously thought. Moscow is now looking for alternative ways of financing its crisis remedies.
On Easter, representatives of oil-producing countries (OPEC+) have reached an agreement on limiting production. Before the official confirmation the price of oil jumped up but later fell again and on April 14th, both the US and Brent prices increased approx. one per cent.
After the spread of coronavirus caused a sudden drop in demand for oil, major oil countries, led by Saudi Arabia, came up with a plan to prevent further fall in prices. However, those plans were hindered by Russia whose economy has since then took a beating, but the leadership remains optimistic.