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.
OPEC`s decision not to reduce oil production will affect major oil producers and may undermine the global oil industry, planting the seeds for a major oil crisis in 2015 or 2016, international oil economist, Dr. Mamdouh Salameh told RT.
Italian politician Franco Frattini has hit out at sanctions implemented against Russia, saying they are counterproductive. He also says Russian loans to Ukraine are much bigger than the amount of money the EU is prepared to offer Kiev.
OPEC is not a monolithic organization and it fails to agree on common policy, so it’s unlikely that the upcoming Vienna meeting will become a deciding factor on oil prices, Adrian Salbuchi, International consultant, told RT.
If European countries don’t want to eliminate gas supply problems by building the South Stream pipeline, they should take responsibility for the possible transit risks, said Russian Minister of Economic Development Aleksey Ulyukayev.
Most European countries have enough stocks to cover for “lost” gas from Russia should there be a major disruption. Hardest hit would be Slovakia, Austria, and Turkey as they rely on Russia for at least 15 percent of their energy needs, OECD experts say.
The BRICS Bank marks a major step to de-dollarization, and a new monetary system. It should replace the Western-dominated “predatory casino scheme” that has contributed to world wars and “economic terrorism,” says former World Bank economist Peter Koenig.