By Emre Gürkan Abay
Russia Letter – Week beginning June 27

- Brexit in Russia

 Russian markets mostly closed in the red on Friday after the Brexit decision.

However, most Russian officials consider that the drop in oil prices is problematic for the country, on the other hand, the Brexit is just some background noise considering all the problems that the Russian economy is currently facing.

Russian Minister of Finance Anton Siluanov said that his country will not be directly affected by the Brexit decision, while asserting that some adjustments to the course of oil prices could be made.

Nonetheless, markets in Russia will also follow the aftermath of the Brexit this week.

- Putin in China

Russian President Vladimir Putin’s visit to China last weekend was among the most important developments.

Russia and China sealed a number of energy deals during Putin’s visit, strengthening economic ties while pledging to preserve the strategic balance of power among nations.

Rosneft, Russia’s top oil producer, agreed with China National Chemical Corporation (ChemChina) that it will take a 40 percent stake in Rosneft’s planned petrochemical complex VNHK in Russia’s Far East.

The deal will help Rosneft finance the project and gain access to the markets of the Asia-Pacific region, the Russian firm said in a statement.

 - Russia-Turkey relations

An important invitation from Russia to Turkish Foreign Minister Mevlut Cavlusoglu was sent last week. Cavusoglu was invited to the Russian city of Sochi, where the Black Sea Economic Cooperation (BSEC) summit will take place next week.

Turkey’s FM has not responded to the official invitation yet, however, both Turkey and Russia will await the outcome from the invitation this week. 

27 Jun,2016