WSJ: Russia Is Running Out Of Oil

And it's not just Ukrainian drones.

For a quarter of a century, the Russian economy has been largely dependent on petrodollars. It is this flow of funds that has allowed the Kremlin to finance a full-scale war against Ukraine. But, as the American publication The Wall Street Journal writes, the easy money is gradually drying up, and there are no prospects for its recovery.

Today, Moscow relies on maximizing the exploitation of existing fields, virtually stopping the search for new ones. In the long term, this creates grim prospects for the country.

The large Soviet oilfields began to run out even before the invasion of Ukraine. In response, Russian oil companies have turned to hard-to-reach reserves in the Arctic and Siberia. But developing them requires modern technology that Russia does not have. American companies had access to them, but because of sanctions Russia is deprived of such an opportunity.

An additional blow came from the war itself: some oil industry employees were sent to the front - some for money and some under pressure. Others preferred to emigrate. At the same time, the government raised taxes on oil workers to cover the war costs.

As a result, the industry was set back years. And even if the war ends and sanctions are lifted, many structural problems will remain unresolved.

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