The decrease in oil and gas prices has put Russia in a difficult situation. It has been suggested that Moscow, whose war budget is running out, may enter into new search efforts to compensate for the losses. President Donald Trump’s customs tariffs and the decision by OPEC+ to increase production have changed the energy market dynamics. Both oil and gas prices recorded sharp declines. While natural gas prices in Europe fell by 20 percent, Brent crude oil dropped below $60 and reached the lowest level in four years. The volatility in oil prices is expected to continue for some time, leading to discussions about significant losses for Russia. The price of Russia’s key export product, Ural crude oil, fell to its lowest level in two years, at $50. When the country’s budget for 2025 was being prepared, the price target for Ural was set at $69.70. According to an analysis in the Financial Times, the decline in oil prices has begun to deplete Putin’s war budget. It was mentioned that around one-third of Moscow’s treasury consists of revenues from oil and gas. The current levels of crude oil prices indicate a 2.5 percent decrease from the forecast for 2025. As of today, Brent crude oil is trading close to $65. HOW WILL THE LOSS IN OIL BE COMPENSATED? According to the analysis, if the decline in oil and gas continues, Moscow will have to consider different options. It was noted that Putin might have to think about taking on more debt, cutting non-military expenses, or spending from reserves. Russia had used a significant portion of state funds for the ongoing Ukraine war for the past four years. Additionally, Western countries had seized $340 billion of Moscow’s assets. Economists stated that compensating for oil revenues from other sources was not possible, and borrowing from international markets was difficult due to investors’ fears. Economists expressed that the Russian economy may have to cut non-military expenses, such as social spending.