25-11-2014, 10:49 AM
As discussed Russia's USD reserve and payments will be affected because USD still rule... for now
http://www.valuebuddies.com/thread-5237-...l#pid96284
Nov. 24 (Bloomberg) -- Russia stands to lose as much as
$140 billion a year as a result of lower oil prices and U.S. and European sanctions, Finance Minister Anton Siluanov said, underlining the risks of a prolonged stalemate over Ukraine.
“We’ve seen a contraction of capital inflows into the country,” Siluanov said today at conference in Moscow. “We’re losing about $40 billion a year because of geopolitical sanctions, and we’re losing about about $90 billion to $100 billion on the basis of a 30 percent decline in oil prices.”
The drop in the cost of hydrocarbons is pushing the economy of the world’s biggest energy exporter toward a recession while penalties imposed over Russia’s role in the Ukrainian crisis discourage investors and curb domestic demand. President Vladimir Putin asked his economic team for a plan to survive a decade of sanctions, according to people with knowledge of discussions held in mid-October.
The Russian economy, which is already growing at the slowest in four years, will sink into a recession next year if the price of oil drops to $60 per barrel and sanctions are stiffened, Siluanov said in a Nov. 17 interview. Crude prices began sliding in June, and Brent, the grade traders look at for pricing Russia’s main export blend Urals, dropped below $80 this month.
The Russian central bank forecasts the economy may have zero growth next year after a 1.3 percent gain in 2013. In 2007, when Brent averaged about $73 a barrel, gross domestic product grew 8.5 percent. Net capital outflow may reach $130 billion this year, the highest since the 2008 financial crisis, according to the Finance Ministry.
Oil, Ruble
“The price of oil fell 30 percent since the beginning of the year -- and with it the ruble,” Siluanov said. “The ruble will follow oil prices.”
Russia’s currency has depreciated almost 27 percent this year against the dollar, the worst performance after Ukraine’s hryvnia among global currencies tracked by Bloomberg. The ruble strengthened 1.7 percent to 44.9230 versus the greenback as of
5:33 p.m. in Moscow.
The global glut of oil, which together with gas accounts for about 50 percent of Russia’s state revenue, has contributed to a slide in crude prices to a four-year low. Russia needs Brent to average about $100 this year to balance its budget, Deutsche Bank AG estimated last month.
Brent for January settlement was down 53 cents to $79.83 a barrel on the London-based ICE Futures Europe exchange at 12:40 p.m. local time.
http://www.valuebuddies.com/thread-5237-...l#pid96284
Nov. 24 (Bloomberg) -- Russia stands to lose as much as
$140 billion a year as a result of lower oil prices and U.S. and European sanctions, Finance Minister Anton Siluanov said, underlining the risks of a prolonged stalemate over Ukraine.
“We’ve seen a contraction of capital inflows into the country,” Siluanov said today at conference in Moscow. “We’re losing about $40 billion a year because of geopolitical sanctions, and we’re losing about about $90 billion to $100 billion on the basis of a 30 percent decline in oil prices.”
The drop in the cost of hydrocarbons is pushing the economy of the world’s biggest energy exporter toward a recession while penalties imposed over Russia’s role in the Ukrainian crisis discourage investors and curb domestic demand. President Vladimir Putin asked his economic team for a plan to survive a decade of sanctions, according to people with knowledge of discussions held in mid-October.
The Russian economy, which is already growing at the slowest in four years, will sink into a recession next year if the price of oil drops to $60 per barrel and sanctions are stiffened, Siluanov said in a Nov. 17 interview. Crude prices began sliding in June, and Brent, the grade traders look at for pricing Russia’s main export blend Urals, dropped below $80 this month.
The Russian central bank forecasts the economy may have zero growth next year after a 1.3 percent gain in 2013. In 2007, when Brent averaged about $73 a barrel, gross domestic product grew 8.5 percent. Net capital outflow may reach $130 billion this year, the highest since the 2008 financial crisis, according to the Finance Ministry.
Oil, Ruble
“The price of oil fell 30 percent since the beginning of the year -- and with it the ruble,” Siluanov said. “The ruble will follow oil prices.”
Russia’s currency has depreciated almost 27 percent this year against the dollar, the worst performance after Ukraine’s hryvnia among global currencies tracked by Bloomberg. The ruble strengthened 1.7 percent to 44.9230 versus the greenback as of
5:33 p.m. in Moscow.
The global glut of oil, which together with gas accounts for about 50 percent of Russia’s state revenue, has contributed to a slide in crude prices to a four-year low. Russia needs Brent to average about $100 this year to balance its budget, Deutsche Bank AG estimated last month.
Brent for January settlement was down 53 cents to $79.83 a barrel on the London-based ICE Futures Europe exchange at 12:40 p.m. local time.