Russian economy is "overheated" but far from crisis – economist
The Russian economy is far from being in a crisis but if oil prices plummet the crisis will be inevitable.
Source: Elina Rybakova, Vice President of the Kyiv School of Economy, in an interview for Forbes Ukraine
Quote: "The Russian economy is overheated but, sadly, very far from crisis."
Rybakova explained that it will be hard to achieve a Russian crisis if the West does not block Russian oil exports.
"Some might say it’s basically impossible: they could block it for six months but then Russia will find new ways. Or we will block it but the prices will rise and partially compensate for the losses," she noted.
For instance, if tomorrow oil price falls to US$40 for some reason, then a crisis will definitely begin in Russia.
"But oil prices are not expected to plummet like this so Russia has resources to continue the war. With the current oil price Russia can live at least a few years without crisis," Rybakova added.
Background:
The total income of Russian companies in 2023 fell by 36% – to 814 trillion roubles [about US$91.6 billion], as shown by the information of the analytical portal of the Federal Taxing Service of Russia.
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