During his speech at the World Economic Forum in Davos, US President Donald Trump proposed a strategy to end the Russian-Ukrainian conflict by lowering oil prices. In his opinion, the fall in energy prices will deprive Russia of a key source of income, which will force Moscow to stop military actions.
"If oil prices fell, the Russian-Ukrainian war would end immediately", Trump said.
He called on Saudi Arabia and OPEC countries to increase oil production to lower its price on the world market. At the time of Trump's speech, the price of oil was about $80 per barrel, but after his statement it fell by about one dollar.
Trump also noted that his administration's efforts to resolve the conflict are "a work in progress," adding that a key element of a future deal would be limiting Russia's ability to use energy revenues to finance the fighting. In this context, the president stressed the need for coordinated action by the United States and its allies.
In addition to his proposals to lower oil prices, Trump called on NATO countries to increase their defense spending. He said that in the current geopolitical environment, the alliance members should increase their military budgets to 5% of GDP to ensure sustainable security in Europe and beyond. The statement was a continuation of his long-standing policy of pressuring allies to increase their contribution to common defense.
Economic experts note that lower oil prices could become a serious instrument of pressure on Russia. According to the International Energy Agency (IEA), revenues from oil and gas sales account for more than 40% of Russia's budget. Lowering oil prices to $50-60 per barrel could significantly limit Moscow's financial capabilities.
However, Trump's call for increased oil production in OPEC countries may face resistance.