Low oil prices have cost Russia $17B: India is abandoning Russian resources, and Canada will follow Europe in lowering the price ceiling.

Russia’s federal budget revenue from the oil and gas sector in January-July fell by 19% ($17B) compared to the same period last year, totaling $69.2B. The main reasons are falling oil prices, a stronger ruble, and a sharp decrease in gas exports to the EU.

As well, India’s two largest state-owned oil refining companies, Indian Oil Corp (IOC) and Bharat Petroleum (BPCL), following the US-imposed tariffs, entered the spot market and contracted at least 22 million barrels of non-Russian oil for delivery in September-October. Now Russia is seeking new buyers by offering oil at significantly lower prices to Chinese refineries, further decreasing income for the Kremlin.

Meanwhile, Canada, following the EU and Britain, plans to tighten pressure on Russia by lowering the ceiling price for Russian oil from $60 to $47.6 per barrel.

It’s worth noting that global oil prices fell by 4-5% last week due to fears of declining demand amid concern over US customs policy. As a result, Brent crude traded at $66.40 per barrel on Friday. Russia is preparing to reduce oil prices to $40 per barrel because of oversupply, driven by China’s slowing economy, and increased oil production by the OPEC+ countries.