MOSCOW, March 12. /TASS/. Russia proposed to extend the OPEC+ agreement for a year, it was other countries that initiated leaving the deal, Russian Prime Minister Mikhail Mishustin said opening a government meeting.
"We did not initiate the withdrawal from the agreement [OPEC+ deal]. On the contrary, we proposed to extend the agreement on the existing terms, at least until the end of the second quarter or for a year, so as not to complicate the situation that has developed with the spread of coronavirus," Mishustin stated.
OPEC + countries are "in the same boat" as far as the oil prices situation is concerned, although they had a different level of preparedness for market instability, said Russian Presidential Spokesperson Dmitry Peskov on Thursday, when commenting on reports of a price war allegedly being waged against Russia in this market.
"I want to recall that Riyadh itself has denied reports that there is any kind of price war, especially against Russia," he commented. "Reducing the price of oil and oil products is a general trend, we are all in the same boat in this situation," Peskov said. "It’s another matter that all countries were more or less prepared for such a drop in prices."
At the talks on March 6, the OPEC+ ministers were unable to agree on further parameters of the deal to reduce oil production. Starting from April, all production restrictions will be lifted.
Domestic reserves
Russia has sufficient reserves for the long term, despite low oil prices, the prime minister indicated.
"We have been living in conditions of rather low inflation for several years now, so we have a large margin of safety: the Bank of Russia's gold and currency assets exceeded $570 billion, the volume of liquid assets of the National Wealth Fund is estimated at more than 10 trillion rubles, and even at steadily low oil prices this will be enough for many years to compensate for the budget losses of these funds," Mishustin stressed.
Import substitution
Russia is working on additional import substitution measures in industries and agriculture, the prime minister said.
"Now we are working on additional measures to deepen import substitution in industries and agriculture, expanding opportunities for the export of non-oil and gas high-tech products," he stated.
The prime minister noted that low oil prices and volatility of currencies create not only risks for the economy, but also new opportunities associated with import substitution programs.
He stressed that the implementation of such programs has already brought results.
Tools to maintain financial stability
Russian Prime Minister Mikhail Mishustin assured that Russia has all the tools necessary to maintain financial stability. "The president and the government have the situation in the Russian economy under control. We have all the tools to go through it calmly, without shocks. We have enough resources to maintain financial stability," Mishustin underscored.