The German-Russian Chamber of Commerce estimates Russia could see a $71.8 billion increase in budget revenue this year due to rising oil prices spurred by conflict in the Middle East.
Russia Poised for Significant Financial Boost
The German-Russian Chamber of Commerce (AHK) projects Russia may benefit by $71.8 billion due to increased oil prices resulting from the Israel-Iran conflict, according to a report by dpa.
The AHK estimates that with oil prices sustained above $100 per barrel, Russia could see an additional $71.8 billion in annual budget revenue compared to initial projections.
Oil Price Surge Fuels Russian Earnings
Brent crude oil with delivery in June has risen to over $111 per barrel, a nearly $40 increase since the outbreak of the Middle East conflict. Russia’s budget relies heavily on oil and gas sales, having been based on a price of $59 per barrel.
AHK: Russia is the Primary Beneficiary
Matthias Schepp, head of the AHK, stated Russia is the biggest beneficiary of the new Middle East war. He anticipates a potentially “unprecedented influx of money” to Moscow as a consequence of the conflict.
Strait of Hormuz Blockade Benefits Russia
The German-Russian Chamber of Commerce, representing approximately 750 members, identifies itself as the largest foreign economic association in Russia, according to dpa.
US Policy and European Concerns
Former US President Donald Trump repeatedly stated that NATO countries should militarily intervene to unblock the Strait of Hormuz. Iran has been blocking traffic in the strait, vital for oil and gas exports from the Persian Gulf, for about a month in response to attacks by Israel and the US.
European countries, not consulted by Trump before the war, largely believe the conflict is being waged by the US without a plan and without regard for allied interests. Trump has threatened that if Iran does not reach an agreement by 2:00 AM Polish time on Wednesday, it will be deprived of power plants and bridges and “return to the Stone Age.”
