Russia’s economy has always been dependent on the price of crude oil and natural gas, as commodities account for a significant portion of the economy. In 2013, exports of crude oil and related products accounted for more than two-thirds of the country’s total exports and more than half of the government’s total revenue, meaning that lower prices could have a huge impact on the economy.
In 2014, crude oil prices fell by around 50 percent due to lower demand in Europe, Russia’s key market, and increased production in the United States. However, the biggest catalyst behind Russia’s problems was probably when the Organization of the Petroleum Exporting Countries (OPEC) indicated that it would not cut its production to boost prices in late 2014. While the organization eventually cut production, crude oil prices still haven't recovered to their highs.
Crude oil prices are likely to remain depressed for the foreseeable future. OPEC compliance is less than 50 percent by many accounts if you exclude Kuwait and Saudi Arabia, who cannot be responsible for maintaining cuts on their own. U.S. shale production has proven to be flexible in response to falling crude oil prices, as production levels have continued to recover in 2018.