Plunging oil prices hurt Russian economy, currency

Global Business

Russia1

Russia’s economy continues to be plagued by plunging oil prices an addition to continued Western sanctions. Moscow has lost billions in revenue as a result of the Brent Crude price falling below $50 a barrel. CCTV’s Julia Lyubova reports from Moscow.

Plunging oil prices hurt Russian economy, currency

Plunging oil prices hurt Russian economy, currency

Russia's economy continues to be plagued by plunging oil prices an addition to continued Western sanctions. Moscow has lost billions in revenue as a result of the Brent Crude price falling below $50 a barrel.

More details:

  • The latest weakness in global oil prices has put renewed pressure on Moscow with Russia’s national currency, the rouble, falling against the dollar and euro.
  • Russia’s problems may worsen if the Iran nuclear deal is approved and sanctions on Tehran are lifted.
  • Russia’s Central Bank reduced interest rates to 11 percent, from 11.5 percent in June. While this was fifth easing since January, it also represents the smallest cut this year. The Russian government is facing a challenging task to control inflation with the rouble rate so dependent on oil prices.