Ex-deputy minister: Russia to face turmoil in protracted decline in oil prices to 25 USD

Baku. 8 November. REPORT.AZ/ The decline in oil prices to 25 dollars per barrel is likely to occur in the short term; if this decline will be protracted, the Russian economy is on the brink of survival. 

Report informs citing the RIA Novosti, President of the economic partnership “New economic growth”, former Deputy Minister of economy of the Russian Federation and the former CSR President Mikhail Dmitriev said.

According to him, Russia doesn't have safety mechanism for the protection from such an economic impacts: “If the price of oil will fall and stay at 25 dollars, I badly imagine how Russia will be able to avoid serious economic and social upheaval. Russia has no mechanisms of economic security that could protect from such attacks. It will be about what happened in the 90-ies, when the country entered a period of protracted economic, social and political instability”, stated the economist.

According to experts, the Chinese economy now determines the development of the world economy.“The Chinese banking sector monstrously inflated. The volume of loans exceeds 200% of GDP, and China with its current level of development this very much, especially the quality of state regulation is poor. While China banking sector ranks first in the world in terms of assets”, he added.

“China has been actively increasing imports of Russian oil, because they do not want to depend on oil supplies by sea. But if there is deterioration in the Chinese economy, China will not buy as much oil as now. For 2015, oil imports to China grew by 11%, nowhere in the world had such growth. If this motor breaks down, Russia will be jeopardized. Especially against the background of reducing the supply of our oil to Europe”, said the economist.