The Kremlin binds falls in oil prices with the tense economic situation
| The price of oil collapsed by 7% on Friday after China increased duties on American goodswith which he fierced the trade war. This forced investors to anticipate a recession when betting. Last week, Brent varieties and WTI lost 10.9% and 10.6% respectively. |
Oil and natural gas sales form one -third of the revenue in the Russian Federal Budget.
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These sales decreased by almost 10% in the first quarter to 2.64 trillion. rubles ($ 30.59 billion) because of the lower world oil prices and the stronger ruble.
We carefully monitor the situation that can currently be described as extremely turbulent, tense and emotionally charged.
Dmitry Peskov. A Kremlin spokesman
He linked instability to the US President Donald Trump’s decision to impose duties on different countries around the world.
« The situation in the world economy … is very, very tense and filled with negative expectations – both among the expert community and among market participants, » he added.
In addition to the stock exchange, the OPEC+group, which includes the organization of the exporting countries of oil and its allies, including Russia, decided to speed up its plans to increase yields.
| The Central Bank of Russia said the increase in US customs duties could slow down the global economy, and oil prices may remain lower than expected for several years due to reduced global demand. |
« Our economic advisers are following the situation closely and will do everything they need to minimize the effects of the international economic storm for the Russian economy, » Peskov said.
