We want Putin and Russia to explode.

Saudi Arabia has just undermined the Russian economy

Saudi Arabia, by leading OPEC+, has adopted a strategy that has shaken the Russian economy by increasing oil production, driving prices down to around $60 per barrel — the lowest value in four years.

Officially, the measure aims to contain members that exceeded their production quotas, such as Iraq and Kazakhstan, but analysts suggest broader geopolitical objectives. The drop in prices hits Russia hard, whose economy heavily relies on oil and gas exports, accounting for about one-third of the government budget.

With the war in Ukraine and more than 16,000 economic sanctions in place, Russia is already facing significant difficulties and now finds itself even more pressured. To maintain the state apparatus and the military effort, the country has resorted to its sovereign fund, which has already shrunk by 25% since the beginning of the conflict.

Historically, this tactic resembles the 1980s when Saudi Arabia, with U.S. support, also brought down oil prices, causing billion-dollar losses to the Soviet Union, contributing to its collapse.

Today, the Russian situation is even more delicate: with high inflation, ruble devaluation, and scarcity of imported products, the direct impact falls on the population. Even while maintaining diplomatic relations with Moscow, Saudi Arabia remains dependent on the U.S. in terms of security, and its maneuver indirectly benefits the West, without direct military involvement.

With an already weakened economy and a hostile international scenario, the lingering question is how long Russia will be able to sustain its war and internal stability. This silent offensive in the oil market could be decisive in redefining global power.

Perhaps it is the ideal moment for Brazil to stop just watching from the sidelines and start playing. Take advantage of the winds of chaos to close new energy partnerships, review agreements, and, who knows, even give some relief to the consumer's wallet.

Source: Military Reality

$ETH