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>All of Russia's largest oil companies reported a collapse in profits for the first half of 2025, The Moscow Times writes.

? What are the reasons?

◾ Increased global oil production
Rosneft CEO Igor Sechin explained the decline in profits by noting that OPEC countries significantly ramped up production, lowering global oil prices.

"Comments by the head of Russia's largest oil producer, a longtime ally of Putin, marked the first expression in months of Russian concern over OPEC+'s strategy of accelerating output growth," Reuters noted.

◾ Falling oil prices
A barrel of Urals crude cost almost $70 at the beginning of the year, but only $59.8 in June. In ruble terms, prices fell nearly 30% in six months.

◾ Tightening sanctions against Russia's oil sector
The G7 embargo, sanctions on shipping and logistics, the crackdown on the "shadow fleet," technology bans, financial restrictions, and the inability to settle in dollars.

◾ Threat of secondary sanctions
Apart from Asian countries, which account for over 80% of Russia's exports, almost no one is buying Russian crude oil.

Analysts estimate that Russian oil exports to China fell 11% in volume and 24% in value in the first half of the year.

? Why does this matter?

Oil and gas revenues are the Kremlin's most important source of funds, providing every third ruble in the federal budget.

Putin does not use this money to improve the lives of Russians, repair roads and utilities, build housing, kindergartens, and hospitals - but for war.

In 2025, Russia increased national defense spending by a quarter, to 6.3% of GDP. Defense now accounts for 32% of the federal budget's total expenditures for 2025.

! The fewer oil and gas revenues Russia collects, the weaker its ability will be to kill Ukrainians and threaten the world.