Russia's Export Price Cuts and Fuel Bans Shake Global Markets

Russia has revised its forecast for natural gas exports, slashing the prices for 2024 and beyond. The country now predicts that its natural gas exports to countries outside the ex-Soviet Union will be $434.6 per 1,000 cubic meters this year, dropping significantly to $321.7 per 1,000 cubic meters in 2023. The downward revisions continue for subsequent years, with prices projected to be below $300 in 2026. These adjustments come as Russia expects a decline in domestic oil and gas production and faces reduced natural gas exports to Europe due to the Ukraine conflict. Despite the lower export prices, Russia plans to increase its budget spending for next year, including social and military expenditures.