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Putin’s bluff: business of Russia is ready to fall in oil prices

The Russian economy is ready to withstand even “catastrophic” decline in oil prices, said Russian President Vladimir Putin.

“We think of all the scenarios, including a so-called catastrophic decline in energy prices, it’s possible we allow it,” – said the president of the Russian Federation in an interview on the eve of the G20 summit in Australia.

Putin said that the summit will hold several meetings, including Chancellor Angela Merkel.

He said that he does not intend to raise the issue of sanctions. “Why will I pay attention to it, something to ask? It is useless, “- said Putin.

Recall the Russian budget loses about 80 billion rubles ($ 2 billion) on every dollar in case of falling oil prices.

Prices for Brent crude fell by more than 20% from the June peak, which reduced tax revenues from the most valuable Russian exports worth billions of dollars.

According to the forecast of Sberbank, Russia will go into the budget deficit next year if oil cost less than $ 104 a barrel. With a price of $ 90 per barrel in Russia will be a deficit of 1.2% of GDP. On Friday, November 14, the price of Brent fell to 77.83 dollars per barrel.

According to analysts JPMorgan, oil prices may fall to $ 70 a barrel and even touch the level of $ 65 in early January next year. This decline in oil prices would happen if at the November meeting of OPEC decides to cut the quota for production.

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