Putin warned a catastrophic fall on oil prices – media

A similar collapse of oil prices in the 1980s made it impossible for the USSR to compete with the United States with the weapon breed.

The Central Bank of Russia has warned the politicians of the Russian Federation that the United States and OPEC can make for the oil market, which will be able to repeat the collapse of the collapse of the 1980s prices, with an impact on the collapse of the Soviet Union. This was reported by the news agency Reuters.

The warning rang a few weeks before US president Donald Trump and Russian dictator Vladimir Putin began negotiating at the end of the war against Ukraine.

Trump representatives previously argued that Washington could impose additional sanctions against Russia without a peace agreement. Trump has pledged to increase oil production in the United States and calls on the leader of OPEC – Saudi Arabia to produce more oil to help the global economy.

The central bank, which at least once a year examines economic risks to closed reports, does not report which OPEC and the United States scenario can fill the oil market and how likely these risks are.

In his previous reports, the Central Bank called oil prices one of the dangers for the Russian economy, but never spoke in more detail about how a long rotation of low oil prices could occur.

The Ministry of Economy has also created a separate presentation for the meeting, citing other risks for the economy: reducing investors’ activity, increasing costs and “waste debt”.

“The price of oil is a significant risk,” says one of the slides, where “a significant increase in labor in the United States and out of OPEC” is noted in the risks.

OPEC reserve capacities are close to the record level and equal to the volume of Russian raw oil exports.

“Historical tree – after a period of high oil prices in 1974-1985, 18 (!!!) year of low oil prices,” the presentation slide with three exclaim scores testified.

For Russia, the world’s second largest exporter, oil and gas became at the same time through strength and weakness as one of the largest hydrocarbon pools in the world in Western Siberia was opened in the USSR.

For decades, high oil prices have allowed the Kremlin to soften the consequences of economic collapse and to spend funding for political campaigns abroad, such as the support of governments from Cuba to Angola and Vietnam. As prices collapsed, the economy was lowered, causing unmoved geopolitical consequences, such as the collapse of the Soviet Union in 1991.

The collapse of oil prices in the 1980s made competing with the United States with the weapon race that was impossible for the Soviet Union. Financial problems intensified and led to the collapse of the Soviet Union.

Currently, oil prices cost about $ 70 per barrel – a comfortable level for Russia, the budget of which involves oil prices of $ 69.7 per barrel.

Since 1991, Moscow has experienced many financial shocks due to low oil prices. In 1998, he announced the default on external debt after prices fell to $ 10 per barrel.

In 2008, Moscow had to use fiscal and reserve buffers to stabilize the economy and contain unemployment after oil prices fell due to problems with the real estate sector in the United States.

Oil prices have also dropped dramatically over the last 15 years (during the coronavirus pandemya), but the short -term nature of denial has not been a serious test for Kremlin’s stability.

As you know, US president Donald Trump called Saudi Arabia and OPEC to reduce oil prices. In his belief, it will help to quickly end the Russian war against Ukraine.

We added that Ukraine has suggested that Russia’s maximum price set for $ 30 per barrel.

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