With the end of the South Stream project, Russia will have to adapt to a new market where it will not provide gas delivery to end users, Aleksey Miller, the head of Gazprom said in an interview confirming South Stream will not be resumed.
The Russian economy is hurting from sanctions, low oil prices, and geopolitical tension, but predicting its imminent collapse is a fear-mongering tactic, and not entirely true, Russia’s Deputy Finance Minister tells RT.
The West was hoping that sanctions and the falling ruble would force Russia to shift its policy, but Putin made it clear during his Federal Assembly address that Russia will continue its course, Mark Sleboda of Moscow State University, told RT.
The US House of Representatives’ resolution passed Tuesday declares not only war against Russia, but a war for Kiev against Donetsk and Lugansk, Daniel McAdams, executive director at the Ron Paul Institute, told RT.
Vladimir Putin has proposed a total amnesty for all funds returning to Russia a month after signing an anti-offshore bill curbing capital flight. ‘Let us put this page in our history behind us. Do it once, but right’ he told the Federal assembly.
Excluding Russia from the global SWIFT banking transactions system is another form of sanctions and would mean “war,” said Andrey Kostin, head of VTB Russia’s second largest bank, adding that should it happen Russia has a “Plan B.”
As a lot of exported Russian oil and gas is paid for in foreign currency and the government debt is comparatively low, things in Russia are not that bleak despite the falling ruble and oil price, Patrick Young, global markets expert, told RT.
Russia got tired of banging on a closed door and said that if the EU doesn’t want its gas through South Stream, then so be it, and it will look for different markets, Petr Panov chairman of the investment group Trioctoni told RT.
Moscow and Ankara do not really see eye to eye on politics, but despite that have big economic potential, with Turkey considering itself an in-between partner who would take gas from Russia to Europe, Martin McCauley of the University of London, told RT.
The current oil price – about $70 per barrel – is acceptable for Russia and will not cause internal crisis, Aleksey Ulyukayev, minister of economic development, says. The price that matters for the budget is in rubles, which is balanced by currency rates.
Brent crude oil slumped to below $70 on Friday, its lowest level since 2010, after OPEC decided not to cut oil production. Venezuela's Foreign Minister said the group had worse cases to handle, adding that the current slump has partly political grounds.