Russia Prepared for Oil Price Plunge – Deputy PM

The Russian government is prepared for any scenario in global economic developments and has no serious fears in the wake of world oil price falls and the rise of the dollar, Vice-Premier Arkady Dvorkovich said on Thursday.

“We are prepared for any scenario and we have the necessary reserves. So far, world oil prices are all the same higher than the prices projected in the budget,” Dvorkovich said.

Russia’s 2012 budget is based on a Urals oil blend price at $100 per barrel. World oil prices have seen a significant drop in recent weeks over investors’ increased concerns about the eurozone’s lingering sovereign debt crisis and the impact it might have on the global economy.

The price of Brent benchmark crude has fallen from some $118 per barrel and is now trading at $103 per barrel in international oil markets.

The oil price slump has been a factor behind the ruble’s depreciation against major world currencies. As of 14:35 p.m. Moscow time (10:35 GMT), the ruble lost 29 kopecks against the greenback to 33.05 rubles to the dollar, past the psychologically important level of 33 rubles to the dollar and plunged 44 kopecks against the euro to 41.04.

“We have no serious fears but, nevertheless, we have a full arsenal of tools required to fight crisis factors, if they emerge,” Dvorkovich said.


Leave a comment