Moscow - Russia is losing around $40 billion per year due to sanctions and $90-$100 billion because of falling oil prices, Finance Minister Anton Siluanov said at an international economic forum on Monday, Nov. 24.
“We are losing around $40 billion per year due to geopolitical sanctions and we’re losing around $90-$100 billion per year because of the 30 percent drop in oil prices,” he said.
“Concerning geopolitics, a drop in capital inflow to the country has occurred. Loans, invested resources… how much does that cost? Around $40 billion per year,” Siluanov said, adding that capital outflow from Russia was estimated at $130 billion for this year.
“Really, most capital outflow takes place when the savings of the public and economic agents are converted from rubles into foreign currency at a time when the exchange rate is experiencing volatility,” he said.
Siluanov added that the effects of geopolitical sanctions were substantial for Russia, “but this is not as critical for the exchange rate, maybe even for the budget, as [it is for] the question of prices for our export goods.”
“The price of oil has fallen by 30 percent since the beginning of the year. And by the way, the ruble has dropped by the same 30 percent. When people ask me, look, you’re the Finance Minister… what will the ruble’s exchange rate be? It’s impossible to answer that because many factors exist here. I say watch oil prices. [Watch] how they behave, and that is how the ruble’s exchange rate will behave,” Siluanov said.
