By Emre Gürkan Abay
Russia Letter, week beginning Sept. 26

- Eyes on Algeria

Global oil markets, and Russia as a major oil producer, have turned their eyes to Algeria, as the world's largest producers of OPEC gathered in the North African country to discuss ways to support the oil market.

While experts highly doubt a possible agreement between the oil producing countries, countries including Algeria and Venezuela are expected to aggressively pursue an agreement as their highly oil-dependent economies are in a dire situation compared to other producers.

Meanwhile, Russian daily oil production hit a new record with more than 11 million barrels of daily oil output on Sept. 8, Russian Deputy Energy Minister Kirill Molodtsov said Wednesday in the largest city of the Tyumen Oblast - an oil-rich area bordering Kazakhstan.

Russia's oil production increased dramatically year over year and the country's daily oil output in 2015, which rose by 1.4 percent, reached 10.7 million barrels of oil compared to the previous year.

The increase in oil output from the oil fields in Russia's north and in the East Siberian oil field contributed to this record. In August, Russia's daily oil production was 10.71 million barrels.

- Main data still decreasing

Real wages and retail trade turnover in Russia continue their decrease in the crisis-hit economy, recent data showed.

Retail trade turnover in the first eight months of this year dropped by 5.7 percent to 17.9 trillion rubles, compared to 2015.

Real wages in August this year decreased by 8.3 percent, in comparison with the same period last year.

However, positive data in the unemployment rate continues to decrease as well.

The unemployment rate in August in Russia dropped by 0.1 percent to 5.2 percent, compared to the previous month.

Nonetheless, considering the economic crisis in Russia for the past two years, the unemployment rate in Russia remains relatively low.

Experts in the country point out that while in Western countries the unemployed apply to official institutions and register themselves to receive governmental aid, in Russia, however, such aid is not an option and the unemployed need to take other measures.


26 Sep,2016