Russia’s oil boom ends

Hello! Welcome to your weekly guide to the Russian economy, written by Alexander Kolyandr and Alexandra Prokopenko and brought to you by The Bell. Russia’s short-term boom from higher oil prices is over, so this week we look at how hard the return to reality will hit.

Back to reality as Moscow’s oil windfall evaporates

The war in Iran gave Russia’s state finances something it hadn’t seen for years — oil at almost $120 a barrel, an easing of sanctions and a flurry of new customers in Asia. For almost four months, the Kremlin could count on the windfall to help cover its widening budget deficit. But Ukrainian strikes, a strong ruble and international restrictions meant it could not fully capitalize, and now the window of opportunity is closed.