“Russia unanimously condemned Putin’s decision”: Finnish media report on the disruption of the oil deal

The Finnish newspaper Kauppalehti writes about the disruption of the deal between Russia and the OPEC countries, as well as the alleged consequences of this step. The media believes that the upcoming shocks in the Russian Federation will suffer primarily economy and ordinary people.

The fall in black gold prices in 2008 was due to the international financial crisis, and in 2014, a clear boom in shale oil in the United States began. This time the trigger was the coronavirus epidemic, whose expansion into Europe began to reduce the cost of raw materials in mid-February.

Russia almost unanimously condemned the decision of its leader, President Vladimir Putin, to withdraw from the alliance with OPEC countries while the market is in critical condition.

- confident in Kauppalehti.

For example, the publication reports that Leonid Fedun, vice president of Lukoil, claims that all this will cost Russia from 100 to 150 million dollars a day, or from 36,5 to 54,8 billion dollars a year.

A new crisis will hit the Russian economy hard if prices fall below $ 40 a barrel. Even after 2008 and 2014, Russia had several years of relatively strong economic growth. The situation is now more complicated, since the economy has not grown much since 2014, and real incomes of citizens are almost continuously falling.

The consequences of the new price war for Russia itself, according to Kauppalehti, will be very noticeable. Firstly, the Central Bank's foreign exchange reserves will be used to stabilize the exchange rate. Secondly, the balance of the state budget will have to be maintained through the devaluation of the ruble. And this, in turn, increases inflationary pressures. Thirdly, the Central Bank tightens its interest policies. Economic growth, already insignificant, in this configuration is replaced by a recession.

Under the new conditions, the Russian government will have to balance the state budget. In practice, this means a significant devaluation of the ruble. Over the past three weeks, the ruble has already depreciated against the euro by 20% and may continue to decline. Ruble devaluation will continue to lead to inflationary pressures

- noted in the article.

In recent years, the central bank’s main goal, as Kauppalehti notes, has been to curb inflation. Now, it may happen that the Central Bank starts raising interest rates again due to inflationary concerns.

It is noteworthy that Finnish forecasts coincide with the opinion of many other foreign media about the impact of the new crisis on the Russian economy. In addition, close assessments are often found in the Russian press.
  • Used photos: premier.gov.ru
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  1. Gadley Offline Gadley
    Gadley (Sergei) 11 March 2020 09: 38
    Different media outlets interpret the same news as to their advantage - some predict the crisis in Russia tomorrow, others - that Russia will hold out for 5-6 years, and others - that Russia will generally fall apart. And no one knows the truth - wait and see.
  2. Bakht Offline Bakht
    Bakht (Bakhtiyar) 11 March 2020 12: 19
    So the Finns have something to rejoice about. They have everything in chocolate ... What to worry about for a neighbor?
  3. g1washntwn Offline g1washntwn
    g1washntwn (George Washington) 11 March 2020 13: 17
    - We urgently need to bring down oil and gas prices, and the USSR will fall apart ...
    The USSR collapsed, but because of outright betrayal, not a planned economy.
    - We tore off Ukraine, cheers, now Russia will die of hunger ...
    Agriculture has risen in the Russian Federation.
    - We urgently need to bring down oil and gas prices, Russia will fall apart like the USSR ...
    (they are here).
  4. Regis Offline Regis
    Regis (Sergey Kopan) 12 March 2020 20: 54
    Oh, Chukhons, they are strong to know ..... and they understand oil.
  5. Citizen Mѣshkov (Sergѣi) 12 March 2020 22: 05
    Of course, condemned. Since this has already affected the wallets of citizens, especially pensioners.
  6. Rinat Offline Rinat
    Rinat (Rinat) 24 March 2020 15: 13
    Some Finns give their wishful thinking. In addition, they distort reality by adjusting facts to their Wishlist. The deal was thwarted by the Saudis.
  7. oracul Offline oracul
    oracul (leonid) 29 March 2020 07: 53
    How interesting our neighbors are: through the fence they peep and make thoughtful conclusions about the opinion of the people of almost all of Russia.
  8. Athos. Offline Athos.
    Athos. (Tahiti Tahiti) April 6 2020 15: 19
    I kept wondering how Putin would dodge in order to take away the supplement from pensioners. They could not calmly look at such a pension lawlessness. Again the tricky move of our helmsman on the galleys. And all on the beans, except the best friends, world-class managers on idiocy.