DAVOS, January 22. /TASS/. Western sanctions and falling world oil prices have dealt a “double blow” to the ruble, Russian former Finance Minister Alexey Kudrin said at the Davos Economic Forum on Thursday.
The sanctions and the fall in world oil prices roughly had an equal impact on the Russian currency, the ex-finance minister said.
“The ruble’s devaluation has two key reasons: a fall in oil prices and the sanctions. The role of the price fall and the sanctions is roughly equal. Russia has been dealt a double blow, which has caused such a profound fall in the ruble exchange rate,” he said, adding this was a “certain price” for geopolitical decisions.
Russia has prepared for the period of lower oil prices, the ex-finance minister said.
“Of $400 billion foreign currency reserves, $190 billion is the government’s reserve. The government has good chances to ensure transition to another price level. The price of $100 per barrel is a temporary price. A more realistic price is the price below $80 per barrel or perhaps below $60 per barrel,” Kudrin said.
“It is rather good that we can be guided by real prices instead of the prices that distorted the country’s prospects,” he said.