U.S. President Donald Trump recently stated there is no need to impose tariffs against China regarding its Russian oil purchases.
Sanctions on India and China Left Untouched
Last week, the U.S. slapped a 25% tariff on Indian exports due to ongoing purchases of Russian oil. When asked about similar action against China, Trump noted, 'Because of what happened today, I think I don’t have to think about that.' This highlights the uneven pressure placed on countries supporting Moscow, with India being the only one facing repercussions.
Economic Consequences for Russia
Russia’s oil exports fell 8% in June year-over-year. The Central Bank predicts prices might drop to $55 per barrel for the remainder of 2025. Meanwhile, the average price of Russian oil declined to $56 per barrel in Q2.
Market Reactions to the Situation
As these developments unfold, oil prices are starting to decline. Brent crude dropped 1.5% to $66.85 per barrel, while U.S. crude decreased by 1.8% to $62.80. Russia’s exports totaled $196.1 billion in the first half of 2025, down 5.9% compared to the previous year.
Despite the measures against India, China remains unaffected by similar sanctions, highlighting the complexities of the current international situation and the economic challenges facing Russia.
