Following Israel’s strikes on Iran, rising oil prices may increase Russia’s revenues from oil sales and improve the country’s ability to sustain military operations against Ukraine.
This is stated in a report by the Institute for the Study of War (ISW), as reported by Ukrinform.
It is noted that after the escalation between Israel and Iran, Brent crude oil futures rose by more than 5%, reaching $74.47 per barrel.
According to ISW, Russia’s revenues from oil and gas sales accounted for approximately 30% of the country’s total federal revenues last year.
This, according to analysts from the Institute for the Study of War, underscores the significant role that income from oil and gas sales plays in financing Russia’s government expenditures.
ISW has previously assessed that increasing economic sanctions against Russia are progressively hindering its ability to sustain prolonged military operations in Ukraine.
“Russia may be able to leverage sudden upticks in oil prices to weather economic challenges and finance a protracted war in Ukraine, assuming the price of oil remains high (such as over $60 per barrel),” the summary states.
Russian President Vladimir Putin has previously expressed concern over falling oil prices, suggesting that it could lead to destabilization of the Russian economy.
As Ukrinform reported, the Israel Defense Forces launched an air campaign against Iran’s nuclear program facilities, striking dozens of targets related to atomic development as well as other military sites.
Following this, Iran launched a massive missile strike in response to Israel’s attacks on nuclear infrastructure and military targets.
Source: Middle East escalation could boost Russia’s war efforts in Ukraine — ISW
