REPORT
By Emre G├╝rkan Abay
Russia letter, week beginning Dec. 5

- Turkish PM Yildirim to visit Russia

 Economic relations between Russia and Turkey will be an important topic on the agenda during Turkish Prime Minister Binali Yildirim’s three-day visit to Russia on Monday.

Turkish ministers for economy, energy, tourism, agriculture and transportation will also accompany Yildirim’s delegation.

 

- Russia celebrates with OPEC decision

 As one of the largest oil exporters in the world and with its economy still in recession, Russia was among the winners from OPEC’s decision last week.  

OPEC surprised the oil markets last week and agreed to cut production by 1.2 million barrels per day to halt the fall of oil prices.

Russian Energy Minister Alexander Novak welcomed the OPEC decision and said Russia was ready to cut its production by 300,000 barrels per day.

The markets in Russia also reacted positively to this major development, as Moscow’s Stock Market and RTS indexes gained value by 1-2 percent last week, with the Russian ruble also lowering towards 63 levels against the U.S. dollar.

However, it still remains unclear whether Russia will keep its promise to cut its oil production, as two of its major oil companies, Rosneft and Lukoil, have both voiced their reluctance to decrease production.

Unlike most companies in Russia, the oil companies have reaped rewards from devaluation in the country’s currency over the last two years, as their exports are conducted in U.S. dollars.

 

- New appointment made for Russia’s economy minister

The 34-year-old Maxim Oreshkin have been appointed as the new Minister of Economic Development in Russia following the arrest of the previous minister, Alexei Ulyukaev, on corruption charges.

05 Dec,2016

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