OPEC-Non-OPEC Deal to Ensure Stability of Russian Economy's Development - Economy Minister
The OPEC-non-OPEC deal will ensure stability of the long-term development of the Russian economy, and will reduce the volatility of its financial market, Russian Economic Development Minister Maxim Oreshkin said Thursday.
During the OPEC session earlier in December, participants of the OPEC-non-OPEC oil output cut deal agreed to reduce overall production by 1.2 million barrels per day starting from the next year, with a view to signing the charter on future long-term cooperation in the first quarter of 2019. OPEC member states will cut production by 800,000 barrels per day and non-OPEC countries by 400,000 barrels per day.
"I assess the deal very positively, primarily from the point of view that it provides stability for long-term development.
Stability in all directions: it reduces volatility of the domestic financial market due to more stable price dynamics in the long term," Oreshkin told reporters.
He noted that without the deal, volatility and risks would be much higher.
"Therefore, from the point of view of sustainable development, this is a very important element that creates the foundation for the entire economy to develop more successfully and more positively," the minister said.
The agreement will also increase investment activity in the oil industry of Russia, and make conditions for investment more stable, according to Oreshkin.