Wednesday 21 October 2020

Russia ‘ready to face oil price slump to $25’

MOSCOW, Russia, December 25, 2019

Russia will have enough accumulated reserves in order to fulfil budgetary obligations for three years in case oil prices fall to $25-30 per barrel, a senior government official was quoted as saying in a media report.

"For our budget and for our oil companies, of course, oil prices of about $60-65 per barrel are naturally positive," Russia's Minister of Finance Anton Siluanov was quoted by Russian news agency Tass.

"We see that the budget is also being implemented steadily, reserves are being filled. Therefore, of course, I would not want any stressful situations either in one direction or another," he added.

"Since oil prices are unlikely to increase dramatically, then if the restrictions on oil production are not reached with Opec countries, there are, of course, risks that prices may drop to $25-30 per barrel. Our budget policy allows us to circumvent these risks for up to three years, fulfilling all our obligations with accumulated reserves,” Siluanov explained.

"Predictability is beneficial for us, the current state of energy prices is beneficial, but if this situation changes, we have our armoured train in reserve," Siluanov concluded.


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