57204
Maxim Oreshkin
World Economy

Russia: Economic Burdens Lessen With Oil Above $40

Russia needs clear economic policies to prevent shocks from oil prices, though stability is expected at $40 per barrel, a development minister said.
The Central Bank of Russia in late December reported a net contraction for full-year 2016, though the level of decline was less severe in the latter half of the year. The oil-dependent economy faced dual strains from the low price of oil and economic sanctions, but Russian Minister of Economic Development Maxim Oreshkin told business daily Kommersant the situation is improving as crude oil prices increase, UPI reported.
Russia is party to a plan outlined by the Organization of Petroleum Exporting Countries to curb production. The move is meant to offset the supply-side strains that pulled oil prices below $30 in early 2016.
“The approved three-year budget demonstrates that under the conservative scenario for the next three years with oil prices of $40 per barrel public finance will be stable without extra tax burden,” the minister said. “The key task of the economic policy is not in trying to guess about the situation on oil markets but in having a clear set of steps in case of any, even the most, uneasy external conditions.”
Russian President Vladimir Putin said the national budget for 2017 was pegged on oil priced at around $40 per barrel. The price for Brent crude oil, the international benchmark, was around $56 per barrel in early Monday trading.
Herman Gref, the CEO at Sberbank, one of Russia’s largest banks, said the nation’s economy was resilient enough to handle a moderate downturn in crude oil prices.
Despite agreed cuts, OPEC said it expects Russia to produce an average 11.1 million barrels per day this year, against the estimated 11.05 million bpd for 2016. Russia has a poor track record of compliance with managed declines, though Putin’s personal involvement in the sector could show the country is serious about bringing the market back toward balance.
In October, Moody’s Investors Service revised its outlook for Russian banks to stable from negative on signs of emerging recovery.

 

Short URL : https://goo.gl/T2Qn1l
  1. https://goo.gl/0R0bP1
  • https://goo.gl/aEENPj
  • https://goo.gl/yhYccd
  • https://goo.gl/xfjTzd
  • https://goo.gl/Gk27U2

You can also read ...

Tunisia to Accelerate Reforms as IMF Freezes Loan
Tunisia is likely to sell stakes in three state-owned banks this...
The 13.9% unemployment rate is the highest since at least 2010.
It’s 4 pm in Nigeria’s capital and Ahmed Chiji has been running...
Including Hong Kong, China accounts for 87% of counterfeit goods seized entering the United States.
Counterfeit goods, software piracy and the theft of trade...
Moody’s estimates 2017 and 2018 growth of the US economy at 2.2% and 2.1, respectively. The estimated trend pace of growth will be sufficient to absorb remaining slack in the labor market, further pushing up nominal wages and inflation.
In January this year, Moody's raised its forecast for US growth...
A gauge for consumer services sales growth rose to a 21-month high. The picture shows industrial robots ready for sale.
China’s economy remained generally steady during the Lunar New...
Kazakh Central Bank
Kazakhstan’s central bank had a blind spot. The range of...
Russia GDP to Grow 2%
Russia’s gross domestic product is due to return to sustainable...
Vietnam Posts Trade Deficit
Vietnam reported trade deficit of $1.2 billion in February, the...

Add new comment

Read our comment policy before posting your viewpoints

Image CAPTCHA
Enter the characters shown in the image.

Trending

Googleplus