Bloomberg calculated how long the shadow "stash" of Russia will be empty


Restricting the price of Russia's crude oil exports deprives its budget of much of its revenue, although it probably won't force the Kremlin to cut spending for many years. All of this was made possible by a $45 billion reserve buffer in yuan-protected yuan. Bloomberg writes about this in an analytical article by columnist Benjamin Harvey.


Revenue from the export-driven oil and gas sector plummeted when the $7-a-barrel G60 cap on Russian oil went into effect last month. This, combined with Moscow's increased spending following the start of the special operation in Ukraine, led to a record deficit in December, when Russia's flagship Urals blend dropped to just $50 (after all discounts and discounts), almost a third less than a year earlier.

Nevertheless, according to Bloomberg Economics, with an average commodity price, the Russian Federation will have enough funds to cover the deficit for at least the next three years. Citigroup Inc. believes that the yuan stash will empty in 2,5 years if the Urals brand trades at the same level.

The yuan is the only currency left in Russian reserves that can be used safely and without fear to intervene in the foreign exchange market after the confiscation of assets worth about $300 billion in the US and Europe.

According to the agency's analysts, a real disaster for the Russian budget may come when domestic brands of oil fall below $25 per reference volume. In this case, shadow funds in yuan will have to be spent this year, after which there will be nothing to compensate for the loss of income.
  • Photos used: pixabay.com
6 comments
Information
Dear reader, to leave comments on the publication, you must sign in.
  1. Irek Offline Irek
    Irek (Paparazzi Kazan) 24 January 2023 09: 48
    +3
    They love their lochtorat, hang ....


    It's like our rackets will "run out" in the summer.
  2. Vasya 225 Offline Vasya 225
    Vasya 225 (Vyacheslav) 24 January 2023 09: 51
    +5
    And how did the country live before turning into a gas station? When did cows graze on Rublyovka? There were no cruiser-style yachts? Well, whoever has little, especially, and there is nothing to go bald from fear. It's just that the owners of factories, newspapers will either tighten up ... or they will be squeezed.
  3. kriten Offline kriten
    kriten (Vladimir) 24 January 2023 10: 38
    +4
    Written for those who believe that the West is spending money on the war for good reason and are waiting for the collapse of Russia within a year or three.
  4. The comment was deleted.
  5. ksa Offline ksa
    ksa 24 January 2023 20: 45
    0
    It is difficult to judge and give advice when you do not understand the issue. This is me about myself. Is it possible to screw oil wells? I heard that it is possible, but then you will revive it - this well. If only it could be dumped into a reservoir. But there is no such reservoir. I think we urgently need to make storage tanks for oil. As for underground gas storage facilities. And based on this situation (the well from which the oil went to Europe cannot be sealed; there is nowhere to drain it), it turns out that it is most profitable to sell it for free. Let them take and be grateful for our generosity. That's just UY to you, not gratitude. The weak must pay.
  6. Yaroslav_Wise Offline Yaroslav_Wise
    Yaroslav_Wise (Yaroslav) 25 January 2023 09: 07
    0
    "Urals" will become $25 when no one needs oil. Europe, for example, will not need oil for the sole reason that the Europeans simply will not have money. As, in other matters, and production.
  7. lord-palladore-11045 (Konstantin Puchkov) 25 January 2023 10: 13
    0
    Oh, Bloomberg has counted all the stash... go not all? Or all? Did you look in a moth-eaten felt boots?