June 1, 2017 – Fort Russ News –
Russia’s Ministry of Finance would like to see the ruble cease to be dependent on oil prices and become a truly free currency.
For this, the Ministry of Finance completed a number of interventions this year when oil and gas revenues were selling at the price of $ 40 a barrel (for oil.)
Deputy Finance Minister Vladimir Kolychev noted that the aim of these interventions was the stability of the budget. After the central bank let the ruble float freely, the Ministry of Finance pursued other objectives. In the absence of artificial restraint of the ruble, is an important change in policy.
Changing the fiscal rule was one of the most effective measures of the government to fight the reduction of economic dependence on oil and protect it from the vibrations, after the collapse of the oil market undermined the financial position of both the state and consumers.
Despite the fact that Russia, along with OPEC, is trying to stabilize the oil market, there is a risk that the resource price drops below $ 40 per barrel.
In this case, the ruble will be under significant pressure and will lose growth.
The agreement between OPEC and partners, sooner or later will remove excess oil reserves. But whether the market is balanced in terms of supply and demand at the time of completion of the agreement, is for the moment difficult to conclude.