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Russian economy can withstand severe oil price fluctuations — minister

The Central Bank considers the repetition financial crisis of December 2014 unrealistic

UFA on July 9. / TASS / The Russian economy is capable of withstanding very severe fluctuations in oil prices, Economic Development Minister Alexei Ulyukayev told journalists on Thursday at the BRICS summit in Ufa.

"Russia's economy is highly adaptive to oil prices. In terms of the budget, the free-floating ruble creates the ideal margin. Regardless what the price of oil is, the price of oil in rubles is always 3,300-3,400 rubles. In that sense, the budget is guaranteed. In addition, many companies have learned to hedge currency risks and reduced costs. Therefore, I believe that the Russian economy can withstand very severe oil price fluctuations," Ulyukayev said.

The Central Bank considers the repetition financial crisis of December 2014 unrealistic. The bank's report on financial stability notes that even in the case of an extremely negative scenario, including a sharp drop in oil prices, the capital outflows from emerging markets, the Central Bank still has "a wide arsenal of tools to ensure the stability of the financial sector."

Central Bank says that the Russian oil and gas companies will be financially stable, even at the oil price of $40per barrel, while Russian banks and companies have enough money to pay off $ 65 billion of foreign currency debt from May to December 2015.