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Russia will try to lift sanctions due to collapse in prices for oil and gas – Pavlenko

10 April 2020

The Russian Federation will look for new ways to replenish the state budget


Due to the collapse in prices for oil and gas in the world market, Russia will attempt to lift sanctions imposed because of the war with Ukraine. DiXi Group President Olena Pavlenko told this during Kyiv Security Forum, “Ukrainska Enerhetyka” reports.

“According to the results of the OPEC+ discussion tonight, it is unlikely that oil and gas prices will grow much in the near future. They will remain low, while Russia was planning the year 2020 with much higher prices for oil and gas,” said Pavlenko.

In particular, the price for oil was expected on the level of $ 40 per barrel, and for gas – about $ 200 per one thousand cubic meters.

“Now we see $ 20 and less per barrel of oil as well as around $ 100 and sometimes less for gas. Accordingly, Russia will prepare for several years of significant economic crisis. Obviously, it will look for additional sources of budget revenues,” the expert said.

According to her estimation, Russia will make efforts to lift the sanctions imposed because of the war with Ukraine and annexation of the Crimea – especially, these attempts will be noticeable in the second half of the current year.

“We have seen these attempts already. A famous attempt to adopt the declaration of solidarity or humanitarian convoys that Russia is trying to supply to the EU countries. These attempts will increase as Germany will assume the presidency in the EU in the second half of 2020. We know what kinds of good relations Russia has with big German business,” the expert noted.

It will be recalled that in the late March, Russia suggested that the UN General Assembly adopt a “declaration of solidarity” to lift the sanctions. This declaration obliges member states to waive international sanctions against Russia if they are imposed not under the auspices of the UN Security Council.

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