00:57 GMT +322 October 2016

    Russian Gov't Protected Public From Oil Price Fall by Devaluing Ruble

    © AFP 2016/ Emmanuel Dunand
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    Moody's Investors Services said that the impact of the decline in global oil prices on regions in Russia has been cushioned by an accompanying decline in the value of the ruble versus the US dollar.

    WASHINGTON (Sputnik) — The impact of the decline in global oil prices on regions in Russia has been cushioned by an accompanying decline in the value of the ruble versus the US dollar, the New York-based Moody's Investors Services announced.

    "Russian regions have been protected from the full impact of weaker oil prices by a devaluation of the ruble," Moody’s said in a report on Tuesday.

    The Russian government’s devaluation of the ruble had boosted ruble-denominated earnings from oil exports, which are priced in US dollars, the report noted.

    Consequently, "The weaker ruble will limit the overall decline in Russian regions' corporate tax revenues in 2016 to between 6 percent and 10 percent," Moody’s explained.

    Analysts have said the conservative fiscal policies of the Russian government have given it the gold and foreign currency reserves it needs to practice financial flexibility through the recent drop in oil prices.

    However, global oil prices have recovered by 50 percent in the past two months, according to media reports on Tuesday.

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    devaluation, ruble, oil prices, Moody's, Russia
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    • cast235
      Russia may survive easily. Russian gold reserves must be at least 3 times bigger than the biggest in the world at any time..and same on other minerals and cash.
      And now that Russia knows who is sponsoring Russia's destruction, is time to GET TOUGH.
      First all opposition or fifth column should be eliminated as a party. Refuse to let them participate.
      Next Russia should demand that to even consider normal relations, Ukraine MUST be given to it's rightful president and the NAZI'S must GO. All ex soviet states MUST be released and referendums run. And to get gas vis a vis, E.U MUST unite with EEU , CIS and all Russia bring under Russian rule. In a democratic environment.
      They been stealing from Russia, Rigging the cr ratings to force the BONDS into high yield. Which the are or could be secured. With gold.
      I love the idea of EEU EU Union. But won't work with the noe cons inside E.U. So is best to relax. The vis a vis gas cannot happen. And the third energy package is a bad thing showing E.U wants to profit form Russian earnings.
    • jas
      I don't know what Moody's ZIOCIA "analysts" are talking about other than trying to spin the recovery in oil prices as a bad thing for Russia, more Russia bashing.
    • Ann
      So does that mean we should kiss john mclame or kick him?
    • Rogerio de Oliveira
      Even as we see the resent downgrade by Moody’s in South Africa, I believe that now is the time to stand firm with BRICS. South Africa needs to wake up to the benefits of being part of BRICS. South Africa needs to adhere to the advice of international allies and implementation of strategies instead of ‘dialogue’. BEE does not work! It deprives ‘white’ business people from expanding their corporation which intern will lead to job creation. Both ‘white’ and ‘black’ can learn from each other without depriving a person through the colour of his skin. As a white South African who stood against apartheid, I am seen as a second-class citizen because of the colour of my skin. Is this not reverse racism? In 1992, white South Africans had the right for the first time during apartheid to vote against the system. More than 60% of ‘white’ South Africans voted against the old regime. Why are we deprived from our human rights as we are forced to submit under BEE? We are slowly deteriorating as a country but yet the ANC is stubbornly holding on to models that do not work. Collectively through mutual respect, division between ‘black’ and ‘white’ should be deleted through diplomatic resolve but ego’s driven by greed will always jeopardize true reconciliation. The average ‘black’ citizen are not benefiting from BEE, instead they are losing their jobs as more SME’s are forced to close their doors.
    • Anton KOMAROV
      Like all the rating agencies,the political overtones must be considered,namely what is in the interests of the G groupings.
    • Anton KOMAROVin reply toRogerio de Oliveira(Show commentHide comment)
      Rogerio de Oliveira, Hi .That is well said but I think the readers need an explanation of what is BEE(Black Economic Empowerment implimented after Apartheid to even out Social Inequality.The only system where the Majority score at the expense of the minorities =White,Coloured,Indian etc.There is a minimum of 20% of these groups who are way below the poverty line,and 60$ barely surviving).I can say safely that I have both camps in me,White and Black blood.
    • Rogerio de Oliveira
      Thank you for your input and reply Anton. It is greatly appreciated.
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