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The Impact of Falling Oil Prices on Russian Financing/2000/svg" viewBox="0 0 16 16" enable-background="new 0 0 16 16" width="16" height="40">

• SUMMARY
• INTRODUCTION
• LOCAL CURRENCY VS. U.S. DOLLARS
• RUSSIA’S FISCAL OUTLOOK
• CONCLUSION
  1. Russia’s economy has contracted in the face of low oil prices, but large foreign currency reserves and a weakening ruble are helping to keep Russia’s budget financed. 2. Examination of Russian financing should consider the exchange rate from ruble to dollar which has gone from 30:1 to 70:1, causing oil revenues in ruble values to become inflated. 3. Since Russia sets its budget in rubles, not dollars, financing sources from foreign currencies are exceptionally strong relative to rubles.
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Russia has had a hard time since the collapse of global oil prices which began in August 2014. This will continue in 2017. The Russian people are starting to feel the effects of prolonged low oil

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Production cuts agreed by OPEC and its allies are on track to balance global oil markets in the first half of 2019, but more work may be needed after that. If Saudi Arabia, Russia and other countries in the so-called OPEC+ coalition cut production by 1.2 MMbpd as promised for the first six months of […]

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Low oil prices hurt. Signs of bad times started being seen in late 2012. Russia’s 2016 budget had planned for oil prices at $50 per barrel, and the deficit target was set at 3 percent. The drop in oil prices means less income. And that means the budget will not be met. Russia can’t control the price of oil.

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