Category: Russia

Though hobbled by sanctions, Russian oil company Rosneft announces new production from Far East field. (Photo: Rosneft) MOSCOW, Jan. 20 (UPI) — Hobbled by sanctions, Russian energy company Rosneft announced it joined its U.S. partners at Exxon Mobil in starting oil production from a Far East field. The Russian oil company said the production platform tied to the Arkutun-Dagi field yielded its first oil supplies Monday. Rosneft said the field should have a full-year peak production rate of about 32 million barrels of oil. Rosneft is the target of Western economic sanctions. Igor Sechin , its chief executive officer, is also the target of punitive economic measures. Sechin in August asked the Kremlin to use a national welfare fund to support its growing debt . With oil prices at historic lows, the Russian economy entered 2015 while teetering on the brink of recession. With new oil coming from its […]

Click here to view full article at www.upi.com

Russia ’s record crude oil output last year is likely to prove a high-water mark as economic sanctions and lower prices erode investment in developing deposits needed to replace aging Soviet-era fields. The world’s largest oil producer will probably see total output flat, at best, over the next two to three years, according to analysts and forecasters including OAO Gazprombank. Others, such as the Organization of Petroleum Exporting countries, predict a decline. The prospect of stagnant oil production, which has almost doubled since the chaotic years following the collapse of the Soviet Union , will add to the chronic economic challenges confronting President Vladimir Putin ’s government including the slump in energy prices, sanctions and capital flight. It will also allow other oil-exporting nations to grab market share. Russia’s oil production will likely “be flat or see a small decline for the next two or three years,” said Julian […]

Click here to view full article at www.bloomberg.com

Historical Museum, St.Basil Cathedral, Red Square, Kremlin in Moscow at night ©iStock Russia’s economy will shrink by close to 5 per cent this year, the European Bank for Reconstruction and Development forecast, while average growth for eastern Europe and the former Soviet Union will fall into negative territory for the first time since 2009. The development bank for the former Communist bloc said plunging oil prices and western sanctions would lead to a contraction in the Russia’s economy of 4.8 per cent this year, compared with a forecast drop of 0.2 per cent in September. More On this topic IN Europe The EBRD also forecast that Ukraine’s economy would shrink 5 per cent in 2015, on top of a 7.5 per cent decline last year. The bank warned that Ukraine’s foreign exchange reserves were “dangerously low”, adding it was “concerned” at the time being taken to put together a […]

Click here to view full article at www.ft.com

Antwerp (Platts)–19Jan2015/948 am EST/1448 GMT Russia’s simple refineries are not profitable when the oil price is below $50/barrel, and more are expected to close this year and next, Yuri Timofeev, head of refining strategy at Rosneft, said Monday. Speaking at the Platts middle distillates conference in Antwerp, Timofeev said total refining capacity in Russia will go down over the next few years, but that the quality of refined products will improve substantially. March ICE Brent futures were trading below $50/b Monday, near their lowest level in five years, due to growing supplies globally. Timofeev said the new tax maneuver introduced by Russian authorities at the end of last year would make simple refineries — which produce a high share of lower grade products such as fuel oil — far less profitable. Article continues below… Andrew Bonnington, Platts Editorial Director for European and African Oil and Jorge Montepeque, Platts Global […]

Click here to view full article at www.platts.com

ENLARGE A stands at Monday a market that locals say was recently damaged by shelling in Donetsk in eastern Ukraine. Reuters BRUSSELS—The European Union sought Monday to dispel any suggestion that its united front against Russia was faltering or that members were considering lifting sanctions on Moscow in the near future. Questions about how long the 28-nation bloc can stick together in responding to Russian aggressiveness toward Ukraine were highlighted last week by the emergence of an internal EU paper looking at ways to improve ties with Moscow. EU members friendlier to Russia have long questioned the effectiveness of sanctions in influencing the Kremlin. Some have suggested the damage to the Russian economy caused by falling oil prices could provide an opening for scaling back the sanctions as part of a new diplomatic outreach. But EU foreign ministers, meeting Monday, stressed they would consider relaxing sanctions only if Russia […]

Click here to view full article at www.wsj.com

Is Moscow bluffing on redirecting European gas supplies? thumbnail Moscow says it’s planning to build a pipeline to the Turkish-Greek border and no longer ship natural gas to Western Europe through Ukraine within 3 years. The project is far more about political competition than economics. Russia has announced that it will stop supplying Europe directly with natural gas via pipelines that transit through Ukraine within three years, Russian news agencies reported last week. The move threatens the European Union ‘s energy security and may force Europeans to move quickly to wean the continent from its long-standing dependence on Russian gas. Russia says it will use a newly-announced pipeline through Turkey to bypass Ukraine and channel about 60 billion cubic meters of gas — about 40 percent of all Russian exports to Europe — to a new gas hub on the Greek-Turkish border. Europe will be required to make its […]

Click here to view full article at peakoil.com

Economy continues to falter in low oil price environment under Russian President Vladimir Putin. (UPI /Omar Rashidi) MOSCOW, Jan. 15 (UPI) — Oil priced at $40 per barrel is the benchmark against which the Russian economy is weighed in a new forecast, a Russian central bank official said. The Bank of Russia revised its worst-case scenario from oil priced below the $60 per barrel mark. A revised stress test puts oil at a further discount. "The $40-per-barrel [scenario] is among likely scenarios that we are looking at," First Deputy Chair Xenia Yuadaeva said Wednesday. Russia’s economy is strained by dual pressures from Western sanctions imposed after the annexation of the Crimean Peninsula and the low price of oil, down more than $50 per barrel from June 2014. The Russian currency continues to trade at historic lows, valued at 64 per U.S. dollar in current trading. The Russian bank in […]

Click here to view full article at www.upi.com

By Andrey Ostroukh MOSCOW–Russia will have to cut budget spending this year as revenue declines due to Western sanctions and a fall in the price of oil, the country’s finance minister said Wednesday. Speaking at an annual economic conference, Anton Siluanov said that his ministry plans to cut budget costs by 10% across all sectors except for military spending. Russia is widely expected to slide into recession this year, while also suffering from double-digit inflation. The economic turbulence is the result of a rapid depreciation in the ruble, steered by sliding oil prices, massive capital flight and a geopolitical standoff with the West. Mr. Siluanov said that Russia has a $180 billion shortfall in revenues due to the drop in oil prices. A shortfall in revenues created by Western sanctions is expected to be between $40 billion and $60 billion, Mr. Siluanov added. The finance ministry will tap the […]

Click here to view full article at www.wsj.com