MOSCOW, March 12. /TASS/. Russian Prime Minister Mikhail Mishustin assured that Russia has all the tools necessary to maintain financial stability, he said opening a government meeting.
"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 said.
He recalled that in the past few days, financial and oil markets have been influenced by negative events, such as the coronavirus epidemic and the OPEC decision to withdraw from the agreement to reduce production. "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 said.
Mishustin emphasized that Russia's position was absolutely well-founded and justified, since energy demand was already declining due to a slowdown in the global economy and decline in international trade, but OPEC countries decided not to renew the agreement. Saudi Arabia, being the leader OPEC announced an unprecedented decline for its oil prices and increased production to record levels, which in turn led to a fall in markets, he added.
At the same time, he emphasized the measures that the Russian monetary authorities are taking to maintain financial stability. In particular, he mentioned the Bank of Russia suspending purchases of foreign currency on the market for 30 days, as well as the Ministry of Finance announcing sale of foreign currency in order to compensate for budget losses. According to Mishustin, these measures have already yielded a certain result.
OPEC+ countries are "in the same boat" as far as the oil prices situation is concerned, although they were differently prepared for market instability, Presidential Spokesperson Dmitry Peskov said earlier, commenting on reports of an alleged price war being waged against Russia in this sphere.
"I want to recall that Riyadh itself has denied reports that there is any kind of price war, especially against Russia," he said. "Reducing the price of oil and oil products is a general trend, we are all in the same boat together 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.