Russia is entering a financially catastrophic phase as oil prices collapse toward thirty six dollars per barrel, shattering the foundation of the Kremlin budget and exposing the economic weakness behind its war. A petrostate that depends on high energy profits cannot sustain a long conflict when its main source of revenue is falling faster than the government can respond. Every drop in price tears a deeper hole in the financial system that funds Russia’s military machine.
The impact is visible across the entire sector. Buyers in Asia are stepping back, shipping costs are rising, insurance coverage is shrinking, and Russian crude is piling up in floating storage that drains money instead of generating it. The shadow fleet that once carried sanctioned barrels is being blacklisted and pushed out of safe ports. Russia is exporting more risk and receiving less profit with every voyage.
Inside the country, the damage multiplies. Budget data has disappeared from public release, major companies report severe profit declines, and households have withdrawn billions from the banking system. Industrial shutdowns are expanding and regional populations continue to fall. These pressures combine into a financial crisis that cuts directly into Russia’s ability to fund artillery, missiles, drones, and basic logistics.
This price crash is not a temporary setback. It is a structural break that accelerates Russia’s decline and limits the Kremlin’s capacity to project power beyond its borders.
What we need now is mafia land closing down drilling operations. They will never recover if that happens, because they need Western technology to reopen them.
Taking down the drilling operations directly would be almost impossible with Ukraine’s current capabilities. However, destroying refineries and oil depots would cause oil drilling operations to be stopped. Different approach, same destination.
Ukraine don’t have to touch the drilling operations. Mafia land have nowhere to store the crude oil, so they would have to stop drilling sooner or later.
And it costs each of those tankers about a half million dollars every day those rigs have to wait to unload and nobody is buying them.
I agree with Jason; the mafia economy is spiring downward and nothing can stop the crash. Even talking outside the context of war, mafia land simply makes nothing of value for the world, thus, once fossil fuels are no longer the main energy provider on this globe, the stinker land’s main income will fizzle out forever.
Not only mafia land, but the ME too.