Russian Economy General News: #11

https://oilprice.com/Latest-Energy-News/World-News/Russia-Can-Live-With-25-Oil-For-Years.html

Russia Can Live With $25 Oil For Years

owais.usmani wrote:https://oilprice.com/Latest-Energy-News/World-News/Russia-Can-Live-With-25-Oil-For-Years.html

Russia Can Live With $25 Oil For Years

Unfortunately for Putin , the west in coordination with Saudi Arabia ,they can bring down
oil to $15  or $10 and keep it there for years... and finance the loses..  it hurt the west.. but
it damage significantly way more Russia. Because most of the the Russian economy is dependent on
energy business .  This is how Putin was deceived like the fool he is ,in economic development.  The previous
oil war , started by Obama administration ,show the volatility of Russian economy to oil prices value.
I even remember an interview with Putin , how the fool was bragging about that Americans can't harm the
Russian economy by flooding the market with oil.. because it will damage the American energy industry profits
too..  what the fool did not knew.. is that in the end that doesn't matter ,because it damage Russia economy more ,than American one.. because Russia economy is highly dependent on oil prices and American economy is not..  So what the obama administration was doing to hurt Russia and get it into recession ,as it happened ,
and make Russia burn 200 billion dollars in the bank stabilizing the ruble.. was a controlled demolition , controlled chaos..  it will be like burning a house where you live.. but the fire will start in your enemy room first...and once your enemies neutralized ,then you extinguish the fire.. American are using a self destruction
tactic with their war on oil prices.. it hurts them ,but hurts way significantly more to Russia.. this is why they have been producing as much fracking energy as they can.. even if business goes out of business.. the goal
is to slow down Russia economy.. and they are doing a pretty descent job at it.. combine that with a conflict
here or there.. like syria and ukraine and venezuela interfere are.. and this pressure even more Russia economy.
because is Russia later the one that need to feed , and assist economically them.

So Putin's development of Russia ,makes things a lot easier for the west.. to sabotage Russia economy..
It was him that told that he wanted Russia to become the capital of sports..   this will allowed Putin
to boost russia economy in the most laziest way , with tourism.. and how the west respond? they ban
Russia from the olympics..     So this is the fucking problem of Putin ,he don't understand as long
Russia follows the american system ,the american world , the american business leadership.. then west will
be the ones who create the rules.. and it will be always in favor of the west and against Russia..
Putin told to all its millionaires in russia to invest in commodities..    in rice farming ,bananas ,wheat..
food.. and how the west respond? helping all bordering nations like ukraine to farm exactly the same things that Russia is investing.. to create major pressure on any business that helps russia economy ,to minimize or neutralize their economy.  But if Russia goes and decide to become the capital of space explorations.. and manned space travel , and space tourism.. americans can't sanction that.. same way that they could not sanction huawei business with the world..no matter how hard trump tried.. the fact is Business leadership in modern business ,that nobody else have ,is a real powerful weapon ,that can be used to lure away nations from the US system and finish their empire.. The more successful a nation is with modern future like business ,the more powerful their influence in the world will be.. and this threatens the not only US leadership but its economy too.
The west target Russian business.. putin need to do the same.. and fight back at US most influential prestigious business that more proud they are.. and use to influence the world into their orbit.. it can't continue ignoring the
western leadership..as he have been doing.. by promoting distractions as sports and museums and expensive parks are .


Had Russia had a digital economy , providing services ,advisory ,how's to do this or that, entertainment ,movies ,
games.. and around small business sorta of ebay for russians ,then it will be impossible to sanction.. to trace.. especially if Russia have its own internet .. the future of the world will be for those that leads in modern business. and those nations that continues with the most basic and primitive forms of economy like Russia is, will be left behind and easily isolated its economy from the world..  Will not be surprised if US manage to block Russia energy deals with Europe ,and cut in half the economy of the country ,after they replace the current leadership in europe .

Americans don't need money , they can print it...and because they are the leaders of the world development,
other nations who desire to do business with americans  ,like the entire world ,will continue buying their debt.
this is only possible when a nation have a system in place ,that is hold together , only thanks to US business power and business leadership. The US empire is only possible also.. because no other nation challenge it..
Russia is not challenging it..  they only disobey when ordered to do something they don't want.. but still don't challenge it.. don't offer an alternative to the US system.. something that could truly end the conflicts in the world ,when leadership is shared or a new system is in place by competition that is more fair .

in more news..

Russia currency ruble at its lowest value since 4 years..  



is great that the "chessmaster" Putin saved so much money ,to burn it later to cover the holes
of its primitive gas station economy..

Vann7 wrote:

owais.usmani wrote:https://oilprice.com/Latest-Energy-News/World-News/Russia-Can-Live-With-25-Oil-For-Years.html

Russia Can Live With $25 Oil For Years

Unfortunately for Putin , the west in coordination with Saudi Arabia ,they can bring down
oil to $15  or $10 and keep it there for years... and finance the loses..  it hurt the west.. but
it damage significantly way more Russia. Because most of the the Russian economy is dependent on
energy business .  This is how Putin was deceived like the fool he is ,in economic development.  The previous
oil war , started by Obama administration ,show the volatility of Russian economy to oil prices value.
I even remember an interview with Putin , how the fool was bragging about that Americans can't harm the
Russian economy by flooding the market with oil.. because it will damage the American energy industry profits
too..  what the fool did not knew.. is that in the end that doesn't matter ,because it damage Russia economy more ,than American one.. because Russia economy is highly dependent on oil prices and American economy is not..  So what the obama administration was doing to hurt Russia and get it into recession ,as it happened ,
and make Russia burn 200 billion dollars in the bank stabilizing the ruble.. was a controlled demolition , controlled chaos..  it will be like burning a house where you live.. but the fire will start in your enemy room first...and once your enemies neutralized ,then you extinguish the fire.. American are using a self destruction
tactic with their war on oil prices.. it hurts them ,but hurts way significantly more to Russia.. this is why they have been producing as much fracking energy as they can.. even if business goes out of business.. the goal
is to slow down Russia economy.. and they are doing a pretty descent job at it.. combine that with a conflict
here or there.. like syria and ukraine and venezuela interfere are.. and this pressure even more Russia economy.
because is Russia later the one that need to feed , and assist economically them.

So Putin's development of Russia ,makes things a lot easier for the west.. to sabotage Russia economy..
It was him that told that he wanted Russia to become the capital of sports..   this will allowed Putin
to boost russia economy in the most laziest way , with tourism.. and how the west respond? they ban
Russia from the olympics..     So this is the fucking problem of Putin ,he don't understand as long
Russia follows the american system ,the american world , the american business leadership.. then west will
be the ones who create the rules.. and it will be always in favor of the west and against Russia..
Putin told to all its millionaires in russia to invest in commodities..    in rice farming ,bananas ,wheat..
food.. and how the west respond? helping all bordering nations like ukraine to farm exactly the same things that Russia is investing.. to create major pressure on any business that helps russia economy ,to minimize or neutralize their economy.  But if Russia goes and decide to become the capital of space explorations.. and manned space travel , and space tourism.. americans can't sanction that.. same way that they could not sanction huawei business with the world..no matter how hard trump tried.. the fact is Business leadership in modern business ,that nobody else have ,is a real powerful weapon ,that can be used to lure away nations from the US system and finish their empire.. The more successful a nation is with modern future like business ,the more powerful their influence in the world will be.. and this threatens the not only US leadership but its economy too.
The west target Russian business.. putin need to do the same.. and fight back at US most influential prestigious business that more proud they are.. and use to influence the world into their orbit.. it can't continue ignoring the
western leadership..as he have been doing.. by promoting distractions as sports and museums and expensive parks are .


Had Russia had a digital economy , providing services ,advisory ,how's to do this or that, entertainment ,movies ,
games.. and around small business sorta of ebay for russians ,then it will be impossible to sanction.. to trace.. especially if Russia have its own internet .. the future of the world will be for those that leads in modern business. and those nations that continues with the most basic and primitive forms of economy like Russia is, will be left behind and easily isolated its economy from the world..  Will not be surprised if US manage to block Russia energy deals with Europe ,and cut in half the economy of the country ,after they replace the current leadership in europe .

Americans don't need money , they can print it...and because they are the leaders of the world development,
other nations who desire to do business with americans  ,like the entire world ,will continue buying their debt.
this is only possible when a nation have a system in place ,that is hold together , only thanks to US business power and business leadership. The US empire is only possible also.. because no other nation challenge it..
Russia is not challenging it..  they only disobey when ordered to do something they don't want.. but still don't challenge it.. don't offer an alternative to the US system.. something that could truly end the conflicts in the world ,when leadership is shared or a new system is in place by competition that is more fair .

in more news..

Russia currency ruble at its lowest value since 4 years..  



is great that the "chessmaster" Putin saved so much money ,to burn it later to cover the holes
of its primitive gas station economy..

I did not read your whole post and I am not going to read the full post(mostly because you don't know much) but I read the very top and the very bottom and there is "fuck in" no way that the Americans will support anyone and Saudis at $10-$15 will be fucked and collapse. There was already a coup attempt in Saudi Fuckarbia.

I don't think oil prices will go down more because there will be agreement of some sorts, maybe Russia is pressuring the Saudis to do something (make some sort of peace with Iran, maybe they are pressuring the Saudis to give up Syria.) But most likely the Saudis are throwing a hissy fit that that Russia rejected their proposal.

To answer your question, has the "Chess master" Putin saved enough money to get through this crisis? Yes he has.

In the coming days there will be idiots that will post a lot of bull shit in Jewish newspapers about Russia but it will be mostly false.

Like this crap:

"RUSSIA APPEARS UNPREPARED FOR MARKET CHAOS (AGAIN)."

Had these idiots done there research, they would have known that Russia was the country that did the most to prepare for a economic trouble.

https://southfront.org/russia-appears-unprepared-for-market-chaos-again/

South front strikes again with its lack of knowledge on economics.

The devaluation of the ruble means imports are more expensive but even in the turmoil of 2016 Russia weathered that quite well even though they initially blew money to support the ruble.

Since access to foreign goods was mostly out of the question anyway, it was the domestic production that took over. This will mean further demand for domestic made goods anyway and so foreign markets lose out. While Russian products will be even cheaper and see more demand.

Speculators as usual attack but they have little knowledge on Russia's economy.

par far wrote:

Like this crap:

"RUSSIA APPEARS UNPREPARED FOR MARKET CHAOS (AGAIN)."

Had these idiots done there research, they would have known that Russia was the country that did the most to prepare for a economic trouble.

https://southfront.org/russia-appears-unprepared-for-market-chaos-again/

The typical amateur drivel about the exchange rate being the most important thing in the universe. These idiots do not understand
that the forex only means something to under-developed countries that depend on imports. Russia is one of a handful of countries
on this planet that does not depend on imports. These idiots also fail to see how a forex drop offsets the oil price drop since Russia's
economy operates on rubles and not dollars. These morons actually think that all economies operate on dollars. The retards!

So the forex drop they trot out as "evidence" of Russia being "woefully unprepared" is actually proof of the opposite. Stupid forex speculators
are buffering against the oil price decline. Those forex speculators all drink the NATzO MSM koolaid that Russia is a gas station posing
as a country. Thus they are useful idiots for Russia.

Did you also see the part where they think domestic price increase and inflation are somehow two seperate things?

Anyway, Russia increasing production as well so it will offshoot decline in more production anyway and the government plans to emphasize more on domestic economy so this may be the turning point where Russian government will aim at entirely diminishing needs of export as a driver to the budget and delete to the budget as the GDP overall - rely on Russians themselves.

miketheterrible wrote:Did you also see the part where they think domestic price increase and inflation are somehow two seperate things?

Anyway, Russia increasing production as well so it will offshoot decline in more production anyway and the government plans to emphasize more on domestic economy so this may be the turning point where Russian government will aim at entirely diminishing needs of export as a driver to the budget and delete to the budget as the GDP overall - rely on Russians themselves.

The late 2014 and early 2015 inflation spike was due to the CBR letting the ruble "devalue" (loaded BS terminology) or ruble forex slide by over a factor of two.
Tard-ass speculators achieved a miracle, they totally compensated the oil price drop by the forex slide. This time around they are not as effective and the
oil price drop is not being offset fully by the forex slide. But at the same time, I expect any inflationary shock to be very small this time around. A lot
of the previous inflation spike was due to business panic which also triggered a mini-recession. The current climate is very different.

In terms of oil and gas dependence for exports, if you look at the last 20 years you will see a substantial decline. This makes sense since Russia exports
about the same amount of oil as it did in 2000, but the economy has recovered to be bigger than of the USSR. So we are talking a factor over 2.

And you are right, more emphasis on domestic production is a serious GDP boost. Russia has the technological and economic capacity for hard core
import substitution and at the same time for value added exports. Every dollar of import elimination translates into 2 dollars of GDP (elimination
of 1 dollar minus in GDP account for import combined with 1 dollar plus in the GDP account for domestic production startup). So forex drops
stimulate the Russian economy to reduce imports further and at the same time make value added exports more competitive. No matter what
NATzO wankers think, Russia has most of the world as its export market. It can offer great prices for world leading technology and can undercut
over-inflated, corrupt western prices.

Any country that needs to burn $ 150 BILLIONS ,from the savings account , to keep the nation economy afloat ,
and not sinking like a titanic is a country with an extremely volatile and extremely dependent in oil.

Russia economy will never be stable..when the west is in an undeclared war at russia. and Russia economy will never be stable with an idiot in power in Russia ,that is weak
polite and to make things worse ,does not get a clue , of how to counter its enemies..

All that US needs to do, to break Russia.. is to continue pushing oil prices low..
while at the same time continue creating conflicts /wars, on countries ,regions
that are allied to Russia ,so that this pressure the Russian economy for having to feed them ,
arm them and provide security to them.. basically Russia is like a body guard that works for free.

this is putin chessmaster move..
-HAve lost billions of dollars helping venezuela to not collapse.. from US sanctions.
-have lost billions of dollars helping cuba to not collapse.. from us sanctions
-have lost even more billions of dollars in Syria ,trying to rescue that nation from a war and sanctions.
-have lost billions of dollars because of US interference in ukraine..forcing russia to waste a ton of money
 there ,so they dont over run and cities running.

And will continue losing billions of dollars ,the more wars and sanctions that Washington DC can
very easily create..

-it face a major potential war with Turkey , already the cease fire is crumbling and Erdogan asking more help
to US to counter Russia in idlib.. this is being requested even after he signed a cease of fire , and threatening to restart the war if syria don't stop fighting their backed terrorist ... which seek to reverse syrian gains.
if the war restart with turkey.. means more pressure in Russia economy..
- Venezuela invasion... a new Syrian style war is being cooked in venezuela by US ,using drugs landlords militants instead of Alqaeda ,this will force Russia to build a military base and send a thousands of soldiers there.. just like in syria and with warships and combat planes..

So what strategies have Putin to counter all this proxy wars , that US wage on Russia.. ?  
He have nothing , zero strategy.. just turn the other cheek and bleed and heal their wounds..
because he don't fight back.. neither with bullets to US ,neither with business.. the idiot all he does..
is hope for Americans to "change theirs unscontructive behavior" and restore relations ,when they were never
good.. never were restored .not even after soviet union collapse.  The west wants Russian blood.. and Putin
ill advice policy of building better weapons ,just for show and nothing else.. is an invitation to nations to continue
disrespecting Russia.. because no negative consequences will happen to them .

Russian economy is doomed to fail.. because its weak and clueless President don't fight back. is completely passive , a punching bag , don't do anything to make it very painful for US , every war against a Russian ally and every sabotage on allies economy or Russia economy.. All that US needs to do is keep bleeding Russia ,
keep increasing the conflicts and sabotaging the economy in zones important for Russia economy and it will sooner or later bring down the entire Russian state.. hopefully it happen sooner than later.. so that all putin defenders in this forum ,can finally shut up , since i have been warning for years already ,that Putin strategy
is totally retarded..   the best way to stop an empire is to NOT support it.. [i] to not encourage its products , to compete directly with their enemies most important popular business that they use to influence
the world.. this is the best way..  because the alternative is a war.. But what putin is doing , is the opposite.
continues supporting the american world.. the american internet ,the american banking system ,continue allowing US business to lead the world.. and later the idiot ,don't understand why is Russia not respected in the
world..

the moron ,told just days ago.. when was in the middle of a fight with turkey ,that he wanted to develop his military in a way ,that nations will not want ever to fight Russia..and he will never achieve that by being Weak ,
by not using its military against its enemies.. by allowing its soldiers and planes and bases to be attacked..
Putin weakness and ignorance how to counter its enemies ,is the biggest threat to Russia national security
and the biggest danger to Russian economy.. because no economic strategy he develop ,will work,, if it doesn't
counters directly the american economy ,and their top business.. if it doesn't challenge US system in the world..
with superior business (alone or in alliance with china) ,then it will never have a chance to save his country ,
from being destroyed from the inside.. by bleeding their extremely vulnerable energy focused economy.

I am no economics expert but devaluing the ruble means $10 per barrel gives you more rubles now than it did last week before the devaluation... it effectively increases the value of oil no matter what its value is.

And Russia has relatively low costs per barrel of oil... the countries this is going to really crush are Venezuela, and the US with all their fracking companies that are not making profit at $60 per barrel will be screwed and go under at anything less... pretty soon no bank will refinance their loans to keep operating and when they can't pump any oil at all then the house of cards collapses.

With the interruptions of world trade with the corona virus this increase in production and reduction of prices wont mean a huge amount because demand is reduced, but when things go back to normal and demand increases it will make transport cheaper... but if it destroys the US fracking industry then supply will naturally do down which should boost the prices again.

It is amusing... sometimes we are running out of oil and the price just goes up and up, but then the price goes down an enormous amount but the price of petrol at the pump drops a few cents but over the next few weeks recovers back up again... we are supposed to have competition but we really don't... they just make lots of money and pay their workers minimum wage...

Russian stock markets fall by 10% after global oil price crash

The Russian currency rebounded slightly after collapsing nearly eight percent versus the US dollar on Monday, currently trading at 72.2 against the greenback and 81.38 against the euro. The ruble’s rapid depreciation was caused by the collapse in global oil prices, with the Russian budget significantly dependent on crude.

https://www.rt.com/business/482708-russian-stock-markets-crash/

Even RT says.. it..      that the russian eocnomy is very dependent on crude oil..  
The Russian economic minister also have told  it.. recently.. and i quoted him..
as soon the oil prices collapse.. you see the ruble losing its value in half..    
so the ruble will be worth of toilet paper for buying anything outside of Russia.
and this will not be a problem if Russia was a true independent nation ,with alternative to
the western business and alternative to asian business too that americans control.

But Putin really thinks that he can continue developing Russia as a passenger in the american train
and still hope to be treated fairly..     The only possible solution to fix Russian economy
forever and not allows its enemies to manipulate it.. is called ... I N D E P E N D E N C E .
and Leadership too.. so that other nations follows Russian business world and not the american ones.
 
Russia needs to create an alternative business world , (with china help) that can offer the world ,all the
important business that US have ,that have now no competition ,but that are extremely important for
nations development.. as it is internet , as it is a banking industry ,as it is computers for consumer use,
as it is entertainment ,alternative for US it industry ,and silicon valley business, a new United Nations ,in Russia  territory and a new space station and a new economy based of modern business and not on things that are very
easy for Russian enemies to target. Russia needs to split the world in half.. and lead in innovative modern business as china is doing , to pull away europe and rest of world from NATO and the US business orbit.
None of  those US  sanctions will ever work . if Russia offer alternative to US business ,that are superior to theirs..  

Trump economic war only works ,when they tell the world.. if you want to do business with us ,then you
need to follow our system..this is only possible because of US business leadership.. but had Russia and china
had strong competition ,superior to US modern business ,then people will have no longer to follow the american system.. the economy will sink.. when Huawei completely replace apple.. when Russian computers completely dethrone intel and amd.. when russia create its own world wide internet.. which they can do using satellites. when Russia modernize its economy based on innovative high tech ,space and digital business.  then Russia will become a true independent nation and sanction proof.. and oil wars proof too ,and then finally no nation will want to fight Russia.. if it leads the world with china with advanced innovative business.

As long as inflation is in control a falling ruble is not bad but good for Russia specially its exporters.

Considering Russian Ruble is full convertible and floating which means market decides the price of Ruble wrt to USD and Euro depreciation of Ruble during Oil prices fall is expected which balances the USD/Euro/Ruble exchange rate.

These are just temporary phases which will last for few weeks as soon as Energy prices stabalise and stock market globally stabilises Ruble too will.

The Russian Stock market is not an indicator of Russian Economy unklike Dow Jones US economy will freak out if Dow Jones goes down.

Entire world stock exchange is getting battered. We were starting to expect this but coronavirus helped push it.

What sucks is now we are all waiting on China to come back from the crisis from CV and when manufacturing picks back up.

Jason Kenney here in Alberta will see all he promised go down the drain as Canadian oil has been battered with being one of the lowest prices right now ($29/bbl) and oil is pretty much Alberta's one trick pony along with the concervatives economic policies. He (Jason) just gave $4B to oil tycoons in hope they will push oil development here. Instead they took it and fled back to Texas.

Canada is in a rougher shape than anyone else in this mess. US will hold out longer than us in low oil prices.

And Trudeau won't do shit as he is allowing the Indians (res Indians, not India Indians) set fire to our train carts (one of few transportation methods for oil and gas) out in Ontario cause they get away with anything.

Holy shit Canada is screwed.

miketheterrible wrote:Entire world stock exchange is getting battered.  We were starting to expect this but coronavirus helped push it.

What sucks is now we are all waiting on China to come back from the crisis from CV and when manufacturing picks back up.

Jason Kenney here in Alberta will see all he promised go down the drain as Canadian oil has been battered with being one of the lowest prices right now ($29/bbl) and oil is pretty much Alberta's one trick pony along with the concervatives economic policies. He (Jason) just gave $4B to oil tycoons in hope they will push oil development here. Instead they took it and fled back to Texas.

Canada is in a rougher shape than anyone else in this mess.  US will hold out longer than us in low oil prices.

And Trudeau won't do shit as he is allowing the Indians (res Indians, not India Indians) set fire to our train carts (one of few transportation methods for oil and gas) out in Ontario cause they get away with anything.

Holy shit Canada is screwed.

Thanks for the input. If Canada has a hard time with bitumen sands extraction, you can bet your last penny that all the non-conventional frackers are
bleeding red all over the place. And Trudeau really is a moron. His pandering to those fake (Elizabeth Warren style) aboriginals is obscene. He
actually has the OPP and other provincial police arrest people clearing the road of debris. What a f*cking humanitarian!

kvs wrote:

miketheterrible wrote:Entire world stock exchange is getting battered.  We were starting to expect this but coronavirus helped push it.

What sucks is now we are all waiting on China to come back from the crisis from CV and when manufacturing picks back up.

Jason Kenney here in Alberta will see all he promised go down the drain as Canadian oil has been battered with being one of the lowest prices right now ($29/bbl) and oil is pretty much Alberta's one trick pony along with the concervatives economic policies. He (Jason) just gave $4B to oil tycoons in hope they will push oil development here. Instead they took it and fled back to Texas.

Canada is in a rougher shape than anyone else in this mess.  US will hold out longer than us in low oil prices.

And Trudeau won't do shit as he is allowing the Indians (res Indians, not India Indians) set fire to our train carts (one of few transportation methods for oil and gas) out in Ontario cause they get away with anything.

Holy shit Canada is screwed.

Thanks for the input.   If Canada has a hard time with bitumen sands extraction, you can bet your last penny that all the non-conventional frackers are
bleeding red all over the place.   And Trudeau really is a moron.   His pandering to those fake (Elizabeth Warren style) aboriginals is obscene.    He
actually has the OPP and other provincial police arrest people clearing the road of debris.   What a f*cking humanitarian!

Because of fucks like him, we are gonna get some hardcore Jason Kenney like or even Jason Kenney as our next PM. And then we will truly be screwed.

Russia needs to create an alternative business world , (with china help) that can offer the world ,all the
important business that US have ,that have now no competition ,but that are extremely important for
nations development.

You are dreaming... Russia can create anything they like, they would be alone in that alternative business world, which means it would make no sense... what they need to do is persist in the real business world... as Americas irrational and hostile actions as it lashes out at anyone and everyone it will continue to reduce its own power and turn countries to alternatives... if Russia leaves they wont be an alternative...

You would have to be pretty small minded to think everyone is going to suddenly stop trading with the US and all trade with Russia... the facts of the matter are the EU most of the time are just as bad as the US anyway, so replacing a with an is no great deal...

Russia needs to engage other countries and get trade deals where both sides benefit and can grow and develop and improve their lot without one side or the other getting control or leverage over the other...

The purpose of the funds put aside for rainy days is to be able to use them when it rains.... it is raining.

Suggesting Putin has failed because he is dipping in to his savings is dumb... not using them would damage the economy, which over time would result in a much bigger cost.

As mentioned economies are being effected everywhere... this isn't just effecting Russia... there are plenty of problems to go around... and Saudi Arabia and Americas actions will have effects... and knowing Trump and Putin I think I know who is going to end up suffering the most... ironically Trump has the best and biggest hand in the game and his original plan to partner with Russia could have led to everything being much much better, but he foolishly was goaded in to changing his plans and now despite a winning hand is loosing to a better player.

Flaming, you are wasting your time with the duntz.

Hell, budget can change at $10/bbl and they could easily balance the current budget as taxes brought in a shit ton to the budget. And there is still massive work on removing further grey economy in Russia which still stands at 30% of GDP. That would be tens of trillions of rubles extra.

Anyway

https://tass.ru/ekonomika/7941127

Experts: actions of the Russian authorities is sufficient to stabilize the financial market

"Huawei recently formed a partnership with Russia’s largest bank, & announced plans boost its purchases in Russia from $392 million to $800 million, train 35,000 IT Russian specialists, & build a new R&D center in the country."

https://asia.nikkei.com/Business/China-tech/Huawei-finds-allies-in-Russia-as-Kremlin-cuts-reliance-on-West2

That would make it Russia's third Huawei's r&d center.

They might as well open up manufacturing too since Russian production is cheaper these days. And may corner Russia's market.

Russian companies really need to get off their ass and do the same. They tried but decided to move production to China anyway.

And now Russia also produces flexible LCD displays of their own.

Further reductions in the value of the ruble make it more and more likely, and rather more profitable for Russia... they have high tech capacity, they have skilled labour, they have land and resources, what they need is a larger market that does not hold them under sanction... if they could get China and India as markets for very high tech stuff they wouldn't need to worry about the western market...

But of course that can cause problems... a high oil price makes you lazy, because you are already making money on oil why bother making your own food when you can pay someone else to make it for you like Venezuela did for decades while oil prices were high.

It is hard to invest money in food and other essentials when you can import such things cheaper and easier and quicker, but as seen when things change like sudden Russian sanctions on EU food imports can cause some short term pain... ironically if these sanctions were not in response to EU sanctions on Russia then the EU could have taken Russia to the WTO to force them to take cheap EU food which would make domestic investment in food production much harder and less effective/successful.

Reduced oil prices are an opportunity to expand investments and development and skill sets... when oil prices recover then Russia will benefit from that but also their economy will become stronger and have more depth... further US sanctions on Russia will have less effect if they make their own food and medicine and they can better support other countries in a similar situation like Iran and Iraq and Syria and Cuba and India and China and North Korea... because if you all work together... you don't need to be best buddies... joined at the hip... but being reasonable and sensible you can resist pressure from bullies trying to steal from you by force when you don't want to work with them.  And that is good for everyone who is a sensible actor... it is the west that will become isolated and an international pariah as they threaten their victims of the very same result...

As markets panic, Russian Ruble is  WORLD’S WORST performing currency in 2020

https://www.rt.com/business/483459-ruble-drop-coronavirus-oil/

As the Euro reached a mark of 88 rubles, the US dollar struck a new post-February 2016 high, rising above the 80 dollar mark to 81.!!!!!  

Numbers late on Wednesday show the next worst-performing currencies behind the ruble as Brazilian real, which has lost 28.21 percent, followed by the Mexican peso at 26.91 percent.

Russia's currency has taken the tumble due to two main events – the coronavirus outbreak and the sharp drop in oil prices, caused by the breakdown of the OPEC+ deal between Moscow and the Saudi Arabia-led bloc.

Oil price drops to lowest level since 2003 as demand for energy weakens due to slowing global economy
Speaking to Moskovsky Komsomolets, economist Eugene Gontmacher highlighted that the ruble had actually strengthened against the dollar at the end of 2019, and subsequently,

“it seemed to our authorities that the economy is no longer so dependent on energy exports.”

 Gontmacher argues that the recent movements of the ruble have proven that this is far from the case and that the Russian economy clearly “did not overcome the dependence” on oil.   Brent crude, which started the year at 66 dollars per barrel, now sits below $30.

It looks like the 5th column liberals also have infiltrated in RT.com..
and that economist world wide are also conspirators..  
because everyone in this forum.. the so called "Experts" claim the Russian economy is not dependent in oil ,
but every economist  in the world ,including Russia economy minister , and Russia
central bank.. all also say that what the outside world says.. that  Russia economy is still dependent in oil..
So whats going on here ? why people insist in this forum to spread lies about Russian economy ,"no longer dependent on oil"  are you listening [kvs] ? [mike] ? and other putin cheerleades of lies ?


Ruble performance is worse than it was since 2003 ,worse than during Obama oil war price , why Russian ruble is the worlds worse performing currency ? when oil reach the record lows?   the Russian government told
their economy can survive with oil at $25 per barrel for some years ...., but what about $20 ?  what about $15 ?  

Putin's dreams of a gas station , are all in ruins.. If the oil prices continues for long so low , Russia energy industry is going to collapse... don't tell the bullshit that the ruble at $81 versus dollar means nothing.. when
the russian bank spent hundred of billions dollars from savings and increased interest rate so high ,in order to stabilize the ruble value.

Russia will have to sink all the gold they accumulated in 10 years in just 6 months  ,and was bragging about ,just that Putin can continue its gas station project in one peace. Saudi Arabia claims it can survive with oil at $6 per barrel... and will not be surprising if US assist saudi arabia stay afloat with loans.. just like they did to ukraine ,.. to keep the oil $15  or $10 per barrel.. just to break Russia economy extremely dependent in energy business.. ... because is war.. and in war any sacrifice is valid..even damaging your own nation energy
business ,if it hurts more your enemy.

it hurts the US shale industry for sure.. this oil war.. but it hurts 10x or even more magnitude  higher at Russian economy.  So Russian ruble will be as worthy as shit and nobody will accept it , Russia will have to buy everything using Gold and the west will be laughing their asses ,to finally break Russia economy ,after that gold
goes out too.. which will not last long ,if no longer ruble accepted world wide..

if there is something positive about all this.. the silver line , in that Russia economy completely collapse with all its energy industry bankrupt .. is that for once Putin's fans club in this forum ,will just shut up for once  and stop defending Putin's mediocre and outdated nation economy , and that this will cost Putin's his presidency and finally Russia will get rid of so incompetent moron with his primitive economic system.. and finally the new government that comes after Putin will understand that a gas station economy ,doesn't work anymore ,and that
Russia needs to modernize its economy for once.. it needs to privatize ,sell to europe most of their oil fields and gas fields ,only stay with enough oil for domestic use ,and that Russia need to do a 180 degrees economy change ,focus in a much more modern economy model . Russia only chance to survive the US economic sabotage ,on their nation. is to fight back.. and challenge US digital economy industry ,challenge US high tech industry and challenge US in space.. the way out of the black hole of Russia gas station economy , is to develop a strong modern business that directly challenge the American high tech and digital economy and that Russia aims also
at full domination in space.. this is when investors money will start to flow more ,in Russia direction and not in the American one.  but Putin's idea of development without leadership ,without a modern economy ,have no place in this world.. the idiot don't understand ,Russia have no chance to survive if continue depending on the
US system ,US banks ,US internet ,US high tech industry..and US digital business.. a real revolution is need in
Russia.. not just in words.. as cuba and venezuela are , revolutions of ideas ,but not in actions.. and this is
what's holding back Russia and his rejected allies ,that their economic model are primitive . if you challenge
the American empire ,you need to take away their modern business leadership ,[u] there is no place for Russia in this world as second or third best and not even as 10th best economy.. it doesn't matter.. if Russia don't lead ,
it breaks.. is as simple as that..this is true because You can't develop a nation economy..when you face a powerful enemy with a leading economy targeting your nation economy. so any economic model in Russia ,that
ignores , US business modern leadership ,and don't offer any competition is doomed to fail. The only reason
russia is not again in the 90s ,is because have one place to seek help.. that is China.. but this is still a dependent nation economy . Russia needs Independence ,to stand on its own ,its nation economy ,in a modern world.

i do agree with Southfront report..that fanboys in this forum condemned..  Putin have learned nothing... from the 2014 oil prices collapse. his incompetence and outdated vision of Russia development ,is a national security threat for Russia existence... if he believe ,that with politeness bullshit ,and sports ,he will continue
"Stabilizing the economy" then he will see now ,how wrong he was.. there is no stability when a nation is weak
and only a punching bag of the west. Thanks to putin 6 fucking years wasted.. in "ending the dependence in oil "
"diversifying the economy".. which it never happened..    Russia continues to be a gas station ,as much
it was in 2014.. nothing have changed.    other than now Putin's Russia have gold for a few years ,to compensate for his mediocre economic model .

Russian rouble is a floating currency so there is a balance between appreciation and depreciation of Rouble versus Dollar.

Due to this the CBR does not have to burn reserves to support Ruble as it did earlier during 2014 crisis where there was a hard pegging of Ruble versus Dollar and CBR had to defend the peg.

The only thing CBR needs to be worried is inflation.

More ever few weeks of bad performance or good performance will not make any impact , they will have to average out Ruble performance over yearly , half yearly or quarterly basis.

Vann7 wrote:It looks like the 5th column liberals also have infiltrated in RT.com..
and that economist world wide are also conspirators..  lol1

Economists working for international capital interests are expected to provide cover for their corrupt paymasters.

RT wrote:Speaking to Moskovsky Komsomolets, economist Eugene Gontmacher highlighted that the ruble had actually strengthened against the dollar at the end of 2019, and subsequently, “it seemed to our authorities that the economy is no longer so dependent on energy exports.”

Gontmacher argues that the recent movements of the ruble have proven that this is far from the case and that the Russian economy clearly “did not overcome the dependence” on oil. Brent crude, which started the year at 66 dollars per barrel, now sits below $30.

What a fucking idiot...  This flaming dickwad calls himself an economist?              

Consider the relative movements of oil price (urals blend) vs the ruble price:\

Date             Urals          Ruble           Ruble/barrel
                   Price          Price

Mar 10         32.00          71.08           2,297

Mar 18         24.65          80.96           1,995

So 23.0% drop in oil price (in USD) only results in a 13.1% drop in ruble revenue for same volume, yet this retard moron doesn't understand the dynamic....

The fact that RT prints such nonsense should be taken as proof that its not a propaganda mouthpiece of the Kremlin as it is usually claimed (by Russias enemies) but exercises journalistic indepedence to a significant degree. Well, it should be, but we all know it won't cuz the Enemy doesn't care about trivial things like facts and truth...