Russia is not having its best economic moment. As consecuence of the continue oil drop during last months – which is now in levels like years before and obviously affects their balance of exports – devaluation of the ruble relative to currencies like the dollar and the impact it will begin to have economic sanctions , forecasts for this year end and as for 2015 are not very positive.
The European sanctions after the different conflicts of this year between Russia and Ukraine broke the strategic alliance with the European Union. Although it is still an important part of this area, as many markets depend on their exportations, it is no more an ally partner and, in long terms, this will take its toll on many of the businesses that were underway.
Listening the area observers like Versus Wealth Management, Credit Suisse or Goldman Sachs, the increase of the consume prices during next year would be about a 0,8% when it was expected to be around the 102%.
Still, the new statements of Russian Deputy Minister of Economy, that announced a final data of the 0,6% for this year, are pointing the same direction although he aware that, if economy follows as it is by now, the technical recession will arrive during the first 2015 trimester.
It is also positive in the Russian big economic problem, all the oil levels valuations. From the Russian government they expect that this downward trend of the barrels is temporary, and that from the end of December and next year the price will stabilize at reasonable prices that will not damage both the country’s account .
In this sense and with the anticipation that OPEP should not lower the production of barrels of oil a day until , at least , the new June meeting, makes Russia itself one of the countries that suffer this consequence, that in the light of these data has suffered looses in their stock market and also the run away of investors, something that made the national currency devalue around the 30% against dollar.
Observers are now valuating the consequences of this new stage because of the dependency that Russia has for the energetic products.