Category: Russia

Russia’s Finance Minister Anton Siluanov. The minister warned that oil prices are likely to remain… ENLARGE Russia’s Finance Minister Anton Siluanov. The minister warned that oil prices are likely to remain at their current low level in the long term and so Russia must adjust its budget to make up for lost revenue. Photo: Reuters. Reuters MOSCOW—Lower oil prices are here to stay for the long term and the country’s budget should be adjusted accordingly, Russia’s finance minister said Wednesday. “The new oil prices, between $80 and $90 a barrel, most probably will stay in the mid to long-term,” Anton Siluanov told the upper house of parliament, before it formally approved the country’s budget for the next three years. Russian budgetary expenses have been growing faster than inflation for years while oil prices remained high. The country’s budget for the next year is still based on an average oil […]

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By James Marson MOSCOW–Russia can’t immediately cut oil production, the head of Russia’s state oil company said Tuesday after a meeting with senior officials from other major oil producers. Igor Sechin said Rosneft, the world’s largest listed oil company by output, could postpone some capital-intensive projects, which would have some impact on oil supply. But he said Russia, unlike members of the Organization of the Petroleum Exporting Countries, couldn’t cut production immediately. "The current price level isn’t critical for us," he said in a company statement. Mr. Sechin’s comments come ahead of an OPEC meeting on Thursday where officials will discuss oil policy amid recently falling oil prices. Mr. Sechin, a close ally of President Vladimir Putin, met with senior officials from Saudi Arabia, Venezuela and Mexico on Tuesday. Write to James Marson at [email protected] Access Investor Kit for Rosneft Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=RU000A0J2Q06

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Russian energy company Gazprom sees South Stream gas pipeline as the answer to European energy security woes. UPI/Shutterstock/Igor Golovniov ATHENS, Greece, Nov. 25 (UPI) — The planned South Stream natural gas pipeline from Russia is a key element to energy security in Europe, Russia’s deputy foreign minister said. Members of the European Parliament in September passed a resolution calling on member states to cancel planned energy sector agreements with Russia, including the South Stream gas pipeline. Russia is facing pressure from Western powers frustrated with the Kremlin’s policies on lingering crises in Ukraine, a former Soviet republic that hosts most of the Russian gas deliveries for the European market. South Stream is touted by Russia as a way to add diversity to a gas transit network dependent on trilateral ties between Brussels, Kiev and Moscow. "Most of our partners understand that the South Stream is their guarantee of gas […]

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Email not displaying correctly? View it in your browser . Russia is set to lose around $40 billion because of Western-imposed sanctions and around  $90 to $100 billion could be lost because of the recent fall in oil prices, Russian Finance Minister Anton Siluanov said Nov. 24, ITAR Tass reported. The announcement comes soon after Russia’s foreign minister accused the West of trying to promote regime change in Moscow by ruining the economy. Stratfor provides global awareness and guidance to individuals, governments and businesses around the world. We use a unique, intel-based approach to analyze world affairs. Copyright © 2014 Stratfor Global Intelligence, All rights reserved. Our mailing address is: 221 West 6th Street Suite 400 – Austin, TX 78701, USA unsubscribe from this list     update subscription preferences | http://us4.forward-to-friend1.com/forward?u=74786417f9554984d314d06bd&id=dfd4fedb21&e=5dc656de01

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Russia ’s energy minister said his country hasn’t decided to cut oil production as he prepares to meet with OPEC ministers to discuss the crude market. Russia is already helping to balance the oil market by keeping output steady, Alexander Novak said today in an interview with state TV channel Rossiya 24. There’s only a small chance the Organization of Petroleum Exporting Countries will agree to reduce output at a meeting this week, he said. “We are not Saudi Arabia, which has the ability to reduce production quickly, ramp up quickly,” Novak said. It’s open question whether an agreement would affect prices, he said. His comments run counter to a report in Kommersant newspaper today that Russia may cut production by 300,000 barrels a day next year to support OPEC reductions of more than 1 million barrels. The group is considering action to boost prices after oil plunged more […]

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Russian economy crumbling during long presidency of Vladimir Putin. UPI/Luo Xiaoguang/Pool Oil has shed at least a quarter of its value since June because of slow economic recovery and an increase in production from North American shale. For a Russian economy dependent on oil revenue, sanctions imposed in response to the Kremlin’s policies in Ukraine have made a difficult market situation worse . "What happened for the economy? We lose at least $40 billion a year due to the political sanctions and at least $90 billion – $100 billion annually due to the oil price fall by 30 percent," Finance Minister Anton Siluanov said. An early November report from the European Commission said the Russian economy started to show signs of recovery in late 2013, though confidence in the Russian investment climate has evaporated in 2014. Separately, the World Bank said there are "substantial risks" to the Russian economy […]

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Russia may cut oil production to shore up flagging prices, but its ability to change output is limited and no decision has been made yet, its energy minister said, underlining Moscow’s desire for a higher oil price. MOSCOW, Nov 21 (Reuters) – Russia may cut oil production to shore up flagging prices, but its ability to change output is limited and no decision has been made yet, its energy minister said, underlining Moscow’s desire for a higher oil price. Before OPEC meets next week, Russia has already spoken to members Venezuela and Saudi Arabia about the need to support the oil market, and Moscow expects to send a high-ranking delegation to Vienna before the meeting to press the message on prices. Russia’s already weak economy has been hit by the falling price of oil, which together with natural gas generates half of state revenue. A price of at least […]

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Kremlin assessing health of oil sector in the face of mounting external economic pressure. UPI/Ivan Vakolenko "Our budget depends very strongly on revenues from the oil industry," he said. "We don’t have such technologies as Saudi Arabia to cut or boost output quickly, but, in general, we’re working inside the government from the viewpoint of the expediency of such methods." Exports of crude oil, petroleum products and natural gas accounted for 68 percent of all export revenues for Russia in 2013. Western powers have sanctioned the Russian energy sector in response to Moscow’s reaction to political upheaval in Ukraine last November, which resulted in the former Soviet republic drawing closer to the European Union. Novak said Russian oil output might be curbed by market mechanisms outside the Western sanction regime. All major oil producers, not just Russia, are feeling some impacts from the bear market for crude oil, he […]

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* Russia needs oil price of $100 to balance budget * Oil prices at four-year low of $78 * Rosneft CEO, Energy Minister to Vienna before OPEC meeting * Russia can’t cut output, has no storage to limit exports By Katya Golubkova, Gleb Gorodyankin and Gleb Stolyarov MOSCOW, Nov 20 (Reuters) – Russia can do little to shore up slumping global prices even if OPEC wants it to. Russian wells will freeze if they stop pumping oil, and the country cannot store the output it would otherwise export. Before next week’s meeting of OPEC, Russia has already spoken to group member Venezuela about the need to "coordinate actions in defence" of oil prices and it plans to send a high-ranking delegation to press the message. But despite needing oil prices of $100 a barrel to balance its budget, Russia has changed little since 2008 when the Organization of the […]

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