Hopes that tougher sanctions and lower oil prices could derail Putin’s war effort underestimate how far the Kremlin has rewired its economy
P
acing inside the Kremlin last weekend, as news feeds churned out minute-by-minute reports of Donald’s Trump’s Venezuelan coup, Vladimir Putin may have been wondering what it would mean for the price of oil.
Crude oil has lubricated the Russian economy for decades – far more than gas exports to Europe – and so the threat of falling oil prices, prompted by US plans for control of Venezuela’s rigs, will have been a source of concern.
Opinion is divided on how quickly the South American country’s creaking oil industry can be revived. But some analysts believe that Venezuela, home to the world’s largest proven reserves, could be pumping millions of additional barrels as early as this year, hitting the global price and squeezing Russia’s income.
