Russia faces a potential fiscal deficit of $100 billion, or 4 per cent of GDP, because of plummeting oil prices due to US sanctions disrupting exports to India and China.

Urals crude from Novorossiysk fell to $34.52 per barrel, about half of 2025s starting price, while Baltic shipments traded at $36, according to The Moscow Times.

Discounts have reached $23-$25 per barrel, with some China-bound cargoes sold below $30, their lowest since the pandemic.

Indian refineries are increasingly refusing Russian oil, forcing price cuts.

November oil and gas revenues fell 34 per cent year-on-year, and December tax receipts may drop to $5.1 billion.

Russia faces a potential fiscal deficit of $100 billion, or 4 per cent of GDP, the highest since 2020.