Russia is becoming too dependent on oil revenues to support its budget as it ramps up military spending, economists said, warning that the government may have to raise taxes if prices of crude fail to meet expectations this year.
The price of Urals oil – Russia’s main export – has plunged more than 20% since early December, when Western nations led by the Group of Seven (G7) imposed a $60 price cap on Russian oil exports to restrict Moscow’s ability to finance what it calls its “special military operation” in Ukraine.
