Russian economy fastens seat belt to ride out economic turbulence

Russia’s Central Bank and government have sufficient tools and resources to maintain stability amid macroeconomic uncertainty, Russian President Vladimir Putin said at a recent meeting with investors. He stressed that the authorities were determined to create favorable conditions, which would ensure the safety of investments and minimize the risks.

The spread of the novel coronavirus dealt a major blow to the world economy. According to UN forecasts, global losses caused by the COVID-19 outbreak could amount to $2 trillion this year. Amid the ongoing epidemiological crisis, Vienna hosted an OPEC meeting on March 6. The participants failed to agree on the terms of the deal to cut production, which will cease to be valid on April 1. That has had an adverse effect on international currency markets, sparking a rise in the dollar and euro exchange rates.

"Russia is a country whose economy continues to be largely dependent on energy resources. These are both oil and natural gas. Although the demand for gas has dropped due to warm winters, it is still fairly high. That is why the Americans are making every effort to twist the arms of Western companies involved in the construction of Nord Stream 2," Azhdar Kurtov, an expert at the Russian Institute for Strategic Studies (RISS), told Izvestia.

The latest statistics indicates that the coronavirus situation in China is stabilizing, he went on to say. "That means that China’s industry, which stopped during the quarantine period, will resume work soon. The demand for energy products, including oil, will grow, and that will result in an increase in the price of that product," the expert explained.

economy Russia