Oil Price makes a major impact on Russian economy, says wealth fund chief

Oil prices will heavily influence on where the Russian economy is heading, according to the chief executive of the Russian Direct Investment Fund (RDIF). However, he further stated that the company’s ties with the major oil producer group OPEC (known as OPEC+) is “ready to act” if required.

On the sidelines of the Russia Calling investment forum in Moscow Wednesday, Kirill Dmitriev, CEO of Russia’s sovereign wealth fund RDIF, told CNBC that “We’re quite optimistic about the Russian market going forward. We believe the oil price will be a significant influence going forward but due to our agreement with Saudi Arabia we believe that oil prices will be stable and the Russian market (is) poised for continuous growth.”

Russia is the world’s second largest natural gas producer, and also, the third largest oil producer. The giant has been relying on its energy exports as international sanctions have made a negative impact on other parts of its economy. Oil prices have surged since late 2016 due to the fact that Russia’s alliance with OPEC to restrain the output of oil in order to balance supply and demand.

(Reference: CNBC)