Category: Russia

Oil prices that have plunged to a 27-month low are inflicting damage on a Russian economy already contending with escalating sanctions from the U.S. and European Union over its role in Ukraine. The CHART OF THE DAY shows how an average oil price of $90 a barrel, close to where prices are now, would give Russia a budget deficit of 1.2 percent of gross domestic product next year, according to Sberbank CIB, the investment bank of Russia’s biggest lender. The right axis shows the budget balance as a percentage of GDP under different oil-price scenarios. The left axis measures spending and revenues in trillions of rubles. The U.S. and EU have targeted individuals, companies and the finance, energy and defense industries to punish ’s government after Russia annexed Crimea and gave support to separatists in eastern Ukraine. While Schlumberger Ltd. and Exxon Mobil Corp. scaled back oil-related operations in […]

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It’s hard to imagine Russian President surrendering power peacefully, said , the one-time oil tycoon who spent a decade in prison. Putin missed his chance to give up power in a peaceful transition, Khodorkovsky, 51, said at the in today. Putin began his current term in 2012, after serving as president from 2000 to 2008 and prime minister from 1999 to 2000 and 2008 to 2012. Once Russia ’s richest man with a fortune of $15 billion, Khodorkovsky was convicted of , money-laundering and oil embezzlement in 2005. He has maintained his innocence, saying the charges against him were retribution for financing political parties that opposed Putin, an allegation the government denies. Related: His comments come as Russia endures sanctions from the U.S. and European Union for its annexation of Crimea and investors pull money from the nation. Khodorkovsky, who was freed in December and has been living in […]

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Economy of President Vladimir Putin’s Russia getting squeezed by Western sanctions. UPI/Debbie Hill MOSCOW, Oct. 6 (UPI) — The value of the Russian ruble hit a historic low Monday when compared with U.S. and European currencies, the Russian Central Bank said. It took just over 40 rubles to buy one U.S. dollar , or just over 50 rubles to buy a euro, in Monday trading, the bank said. The bank said last week it was struggling to keep Russian inflation in check because of U.S. and European sanctions on Russian energy companies. Sanctions were imposed earlier this year because of Russian policies in eastern Ukraine, where pro-Kremlin rebels are fighting for more authority. Exports of crude oil, petroleum products and natural gas account for nearly 70 of all Russian export revenues in 2013. The World Bank finds Russia’s export-based economy leaves it vulnerable to geopolitical tensions. Victoria Nuland , […]

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Russia ’s wheels of power are grinding to a halt. That’s the assessment of five officials close to President , who say that a struggle at the heart of his inner circle is slowing decision making as sanctions squeeze the economy. With Putin focused on foreign policy, rival factions are battling for influence, said the people, who declined to be identified discussing internal issues. One group, centered on Prime Minister , is concerned about Russia’s increasing alienation from the global financial system, said the officials. The other, which includes heads of state companies such as Igor Sechin of and veterans of the security services, favors greater state control over the economy, they said. Russia’s ruling elite is convulsing as the economy careens toward recession, the ruble hovers near a record low and the conflict in Ukraine pushes the country deeper into a standoff with the U.S and its allies. […]

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Ball in Russia’s court in terms of strength of sanctions, U.S. State Department official says. UPI/Ivan Vakolenko WASHINGTON, Oct. 3 (UPI) — Sanctions targeting the Russian energy sector will be rolled back once the Kremlin addresses its obligations in Ukraine, a U.S. State Department official said. The U.S. and European governments have imposed punitive sanctions on Russian energy companies Rosneft, Gazprom Neft and others in response to the crisis in Ukraine. The Russian Central Bank this week said sanctions were getting in the way of efforts to control inflation in the country. Victoria Nuland , assistant secretary of state for the Bureau of European and Eurasian Affairs, told an audience at the Center for European Policy Analysis in Washington sanctions "can and will" be rolled back provided Russia respects Ukraine’s sovereignty and pulls heavy weapons from the region. "It is in Russia’s hands when that day comes," she said […]

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A Shell logo sits on display outside Royal Dutch Shell Plc’s lubricants blending plant in Torzhok, Russia, on Friday, March 21, 2014. Royal Dutch Shell, Europe’s largest oil producer, is marketing its first bonds in Europe since 2009 as the cost of borrowing in euros relative to U.S. dollars approaches the lowest in more than five years. Photographer: Andrey Rudakov/Bloomberg has suspended work on its joint venture with to develop Russian shale oil, the latest evidence that co-operation between western and Russian oil companies has ground to a halt because of sanctions. Alexander Dyukov, chief executive of Gazprom Neft, the oil division of state gas giant , announced the move on Friday. “They [ Shell ] have stopped working on this joint venture, but we are continuing to work by ourselves,” he said in comments carried by Russian newswires. The move comes after ExxonMobil announced it was suspending all […]

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One of Russia ’s prized oils, facing increased competition in Asia, is traveling to a rather unlikely destination: the U.S. West Coast. As the U.S. threatens PresidentVladimir Putin with further economic sanctions over the conflict in Ukraine, light Sokol oil from Russia’s Far East is showing up in California for the first time in six years. Tankers have been carrying the crude to western states from Korea since May as Asia cherry-picks supplies from a growing pool of sources, including West Africa and Latin America, shipping data compiled by Bloomberg show. Sokol’s emergence underscores how oversupplied markets have become with light crude as the U.S. produces record volumes from shale formations and reduces imports. The surplus has grown so large that slowing demand in China and other Asian countries mean it won’t be absorbed, according to “With China’s economic weakness, they may actually be turning away cargoes,” , president […]

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