JRL NEWSWATCH: “Russia’s Economy Suffers Double Hit From Oil Slump and Coronavirus” – Wall Street Journal/ Thomas Grove, Georgi Kantchev

File Photo of Kremlin Tower, St. Basil's, Red Square at Night

“As infections grow, Russia finds a shortfall in oil revenue hurts its ability to offer the kind of emergency support provided in the West.”

“… [Russia’s] slump … began … when coronavirus lockdowns in China and elsewhere pushed oil prices lower. … Putin’s hesitance in joining … big producers to curtail output compounded the problem, driving oil to its lowest price in more than two decades …. [A]s infections balloon … Russia, dependent on oil revenues forOil Well file photo a third of its state budget, finds itself poorly-equipped to offer the sort of economic support programs provided in the West. … [E]conom[ic] minister[] Maxim Reshetnikov … estimated the lockdown costs Russia’s economy [lost output] of $1.3 billion [daily] … [Russia’s] purchasing managers index … slumped in April to its lowest level since records began in 1997. The fallout is … threatening … Putin’s long-term plans to strengthen Russia’s economy and buttress his own dwindling approval ratings through … infrastructure projects ….”

Click here for: “Russia’s Economy Suffers Double Hit From Oil Slump and Coronavirus; As infections grow, Russia finds a shortfall in oil revenue hurts its ability to offer the kind of emergency support provided in the West” – Wall Street Journal/ Thomas Grove, Georgi Kantchev

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