Trump Links Falling Oil Prices to Putin’s Willingness for Ukraine Peace Talks; Kremlin Denies Influence…
On May 5, 2025, U.S. President Donald Trump suggested that declining oil prices are prompting Russian President Vladimir Putin to consider negotiations to end the war in Ukraine. Speaking to reporters in the Oval Office, Trump stated, “I think Russia, with the price of oil right now, oil has gone down, we are in a good position to settle, they want to settle. Ukraine wants to settle.”
In response, Kremlin spokesman Dmitry Peskov emphasized that while oil prices are vital to Russia’s economy and budget, the country’s national interests take precedence. He stated, “Oil prices cannot be a factor that can influence Russia’s attitude towards its national interests.”
Recent data indicates that Russia’s oil price in rubles has plunged to a two-year low, falling below 4,000 rubles per barrel, which is over 40% lower than the 6,726 rubles per barrel projected in the federal budget. The average price of Russia’s Urals and ESPO oil blends dropped to $48.92 per barrel (3,987 rubles), well below even the downgraded government forecast of 5,281 rubles used for taxation.
Despite the economic pressures, Peskov reiterated that Russia’s policies prioritize national interests over economic factors like oil prices. He also noted that Russia continues to collaborate with OPEC+ to stabilize oil prices, as both extreme highs and lows negatively impact the global economy.
