ISW explained Putin's fear of a potential decline in global oil prices.

The Russian dictator Vladimir Putin is attempting to dissuade U.S. President Donald Trump from his intentions to lower global oil prices. If this happens, the dictator will be unable to finance the war against Ukraine.

This is reported by RBK-Ukraine, citing the report from the Institute for the Study of War (ISW).

The report recalled President Donald Trump's statement that oil prices are currently "high enough" for Russia to continue its military actions in Ukraine and his call for OPEC to "reduce oil prices."

During an interview on January 24, Putin responded to Trump, stating that Russia and the U.S. are major producers and consumers of oil, and that "too high prices are bad" for both the American and Russian economies.

The dictator claimed that both Russia and the U.S. rely on energy resources for their domestic industries, and that "too low prices" would undermine the investment opportunities of energy companies.

In this way, Putin attempted to portray a more modern and diversified U.S. economy as functioning similarly to Russia's economy, which is an oil and gas power heavily dependent on energy export revenues.

Putin's Significant Concern

ISW believes that a drop in oil prices would lead to a decrease in federal budget revenues for Russia and pose a risk to the stability of the Russian regime, as well as reduce Russia's share in the global oil market and its economic influence on the world stage.

Moreover, the Institute notes that Putin's emphasis on the need to maintain prices for the sake of energy companies' investments also demonstrates how essential it is for him to cater to the elite of his inner circle, who have personal interests in the energy sector.

Additionally, the agency is convinced that Putin's focus on the interests of his close circle contrasts with the greater attention American leaders pay to the electorate, which has a voice, and to a broader range of business interests that benefit from lower energy prices.

"Putin's attempt to portray the reduction of oil prices as contrary to U.S. interests indicates that he fears the harm such a policy could inflict on Russia. He is trying to convince Trump to abandon these proposals while not yielding to the president's insistence on substantial negotiations to end the war," ISW believes.

U.S. Proposal to Lower Oil Prices

Recently, U.S. President Donald Trump called on Saudi Arabia and OPEC to lower oil prices. In his view, this would lead to a quicker end to the war between Ukraine and Russia.

The official Kiev proposes setting the price at $30 per barrel, which would prevent Russia from further financing the war against Ukraine.

At the same time, the Ministry of Economy in Saudi Arabia is interested in the long-term stability of the oil market.