Why 2026 Won’t be Good for Russia's Economy (Level 1)

Russia earns a lot of money by selling oil to other countries. At the start of the war in Ukraine, oil prices were very high. This helped Russia make huge profits. However, the situation is changing. In 2025, Russia earned much less money from energy than before. Experts think 2026 will be even worse for the Russian economy. There are a few reasons for this drop. First, the world has too much oil right now. Countries like the United States and Guyana are producing more oil than ever. When there is too much oil, the price goes down. Second, the United States created strict rules, called sanctions, to hurt Russian companies. Finally, Ukraine has attacked some Russian oil factories with drones. Because of these problems, Russia must sell its oil at a very low price. In 2022, oil cost around $100 per barrel. Recently, Russian oil prices fell to near $40 per barrel. This means the Russian government has much less money to spend.