Russia in May 2026: the most important developments in economy
Russia's economy in May 2026 was shaped by the world oil market and by Western decisions on sanctions. On May 16 the United States let a waiver on Russian oil sales expire, then on May 18 extended it, allowing Russian seaborne oil loaded by April 17 to be imported until June 17. On May 19 and 20 the UK eased sanctions to allow imports of diesel and jet fuel refined from Russian crude, citing a jet fuel shortage linked to the closure of the Strait of Hormuz. The EU said it would keep its sanctions on Russian oil and gas, EU economy chief Valdis Dombrovskis ruled out easing them, and Commission President Ursula von der Leyen announced preparations for a 21st sanctions package. Russia's oil and gas revenue was projected to rise 39 percent year on year in May, with crude at its highest since 2023.
The domestic picture was mixed. The ruble reached a three-year high against the dollar in mid-month and Bloomberg named it the best-performing currency, though it later weakened past 92 to the dollar and rose again on May 27. Russia cut its growth forecast, a report said the economy contracted for the first time since 2023, and the budget gap widened to a record. Ukrainian drone strikes halted output at several refineries, including in Astrakhan, Moscow, Syzran and NORSI, and diesel output fell a further 10 percent in May. A Moscow court enforced a 200 billion euro ruling against Euroclear over frozen Russian assets, and UniCredit reached a non-binding deal to sell part of its Russian business.
Russia deepened ties with China and pressed neighbours. After the Putin-Xi summit in Beijing, the Kremlin said an understanding on the Power of Siberia 2 gas pipeline had been reached, though no details were given and other reports said little progress was made. Putin warned Armenia of economic consequences if it leaves the Eurasian Economic Union, and Russia restricted imports from Armenia. Astana and Moscow discussed a gas pipeline through Kazakhstan to China.
by WorldBrief & Maksim Micheliov | AI-generated summary
Click a day in the chart above for that day's brief.