Russia expects to derive $13.6B from Strait of Hormuz oil spike

Russia is expecting that the ongoing maritime crisis in the Strait of Hormuz could inject 1 trillion Russian rubles (approximately $13.6 billion) in windfall revenue into the country’s budget, the Russian finance minister said in a recent interview, Anadolu reports.

Anton Siluanov, speaking at the St. Petersburg International Economic Forum, said the rising global oil prices reversed the unfavorable budgetary conditions of earlier this year, while shipping traffic through the Strait of Hormuz came to a halt amid the US and Israel’s attacks against Iran.

Siluanov said the resulting regional instability is heavily benefiting Russia since petroleum is one of the country’s primary exports amid a sharp rise in crude oil prices.

He noted that the current high price levels of Brent crude may not be here for good, given the highly volatile nature of geopolitical conflicts, but if these current market conditions are sustained through the end of the year, Moscow aims to redirect additional resources of around $13.6 billion directly into its National Welfare Fund.

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