REUTERS
Russia wanted to oust U.S. shale oil from the market, but it turned out the opposite.
Independent Russian political scientist Dmitry Oreshkin has said Russia's defeat in the oil price war and the loss of part of the European market is Russian President Vladimir Putin's political failure as well.
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"Of course, this is a terrible geopolitical defeat and a very ill-considered operation. And now it is obviously a personal defeat for Putin as a politician as well. He had to negotiate with both the Saudis and Trump after [Russian Energy Minister Alexander] Novak had 'slammed the door loudly' and left the talks," he told the Ukrainian online news outlet Obozrevatel on May 16.
The political analyst recalled that Russia wanted to oust U.S. shale oil from the market, but it turned out the opposite. American shale producers lowered their targets, having asked for no help from the federal government, Oreshkin said.
"A significant number of Russian oil companies have lost a significant share on the European market. For example, Poland and [countries in] southern Europe, which traditionally purchased Russian oil, have already switched to the cheap one from Saudi Arabia," the expert added.
According to the Russian Finance Ministry's preliminary estimates, the national budget in May 2020 may see RUB 190 billion (around US$2.6 billion) in losses over a decrease in global crude oil prices.