Source : Pixabay/Mayya666
Due to last year’s decline in oil prices, Russian economy got hit but turn of year has seen increase in the prices of oil. According to Russian finance minister, the turnaround in the oil prices had positive effects as it resulted in improved gains in gross domestic product.
Although Russia was producing oil at a higher rate, the decline in the price saw the oil companies producing more oil as economists at the Organization of Petroleum Exporting Countries pointed out earlier. As the Ruble is becoming strong once more, Russian Finance Minister Anton Siluanov said that the gross domestic product is predicted to settle between 1.5 to 2 percent which is relatively higher from the previous estimates. During an interview with Russian news agency Tass, he said, “On the whole we agree that the economy will be growing faster than initially expected. Previously the outlook for this year was 0.6 percent.”
According to several reports, Russia is set to cut down oil production to repair the damage from last year’s drop that saw oil prices dropping below $30 per barrel. Although over the years Russia has been a strong supporter of the production arrangement, its actual compliance has come into question due to apparent lack of financial planning for worst case scenarios.