Russian General Staff: Nearly all low-orbit satellites within reach of US missile defenseMilitary & Defense March 28, 15:09
New Russian spacecraft designed for lunar missions to be run by fail-safe computerScience & Space March 28, 14:56
Putin hails Iran as Russia’s reliable and stable partnerRussian Politics & Diplomacy March 28, 14:17
Military expert warns US ABMs can detect any missile shield, even Russian onesMilitary & Defense March 28, 14:02
Scientists create modified fullerene capable of fighting HIVScience & Space March 28, 13:47
Kremlin notes Russian bank's contacts with Trump's son-in-law 'usual business practice'Business & Economy March 28, 13:28
Kremlin spokesman slams reports of his ‘secret visit’ to Lugansk as ‘fake news’Russian Politics & Diplomacy March 28, 13:19
Russia's Rosneft disappointed by EU Court’s decision on sanctions agains companyBusiness & Economy March 28, 13:10
Kremlin: Attacks on Russian business in Ukraine show country’s 'zero investor confidence'Business & Economy March 28, 13:05
ISTANBUL, October 5. /TASS/. The high volatility of oil prices is over and, consequently, the ruble is close to its fundamental values, Russia’s Economic Development Minister Alexey Ulyukayev told journalists Monday.
"I assume that the oil prices have come to a relative balance in the short term, maybe in the longer term, too. There will be less volatility. A new balance is currently being formed," he said.
According to Ulyukayev, the ruble is almost not connected to the capital movement, it is strongly focused on the balance of trade and, consequently, the price of oil.
The volatility of oil prices is currently very low, he said. "It jumps around $47 — a little higher, a little below it. Accordingly, it is reflected in the exchange rate dynamics," the Minister said.
According to him, the period of high volatility in oil prices is over in the long-term and the ruble exchange rate is near the fundamental values. "I see no reason for any big movements in either direction," Ulyukayev said.
He added that the Russian banks are not very dependent on the devaluation of the Russian currency. Ulyukayev said that there the only risk for the Russian banking system in case of devaluation of the ruble. "This is additional demand for provisions. Inflation risks are higher with the devaluation, the risks of a more conservative policy of the Russian Central Bank on the key rate are also higher. For the banks’ balances it means that there are additional NPL risks, they need to create more provisions. More provisions entail deductions from the capital," Ulyukayev said.