Falling oil prices bode ill for Russia – Bank of Finland blog
Higher deficits may cause authorities to engage in monetary financing, says Heli Simola
Falling oil prices could drive Russia’s economy into crisis over the long term, a senior economist with the Bank of Finland has said.
In a blogpost on May 5, Heli Simola points out that oil and gas revenues account for around 30% of total federal revenues in Russia. Whereas the country’s budget framework assumes that Russian oil exports will sell at $70 a barrel this year and $66 in 2026, Brent crude futures are predicting an average price of $64–65 until the end of next year.
However, Russian
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