MOSCOW (Pakistan Point News / Sputnik - 13th March, 2020) The market downturn provoked by the coronavirus pandemic and the sharp drop in oil prices has had a significant effect on the Russian economy, but an outright recession can be avoided so long as there are no new shocks, First Deputy Prime Minister Andrei Belousov told reporters on Friday.
"Risks always exist, but if the status quo is maintained, if we do not have additional impulses, I think that we do not face recession risks," Belousov said.
Belousov also said that the Russian authorities did not plan to forcibly seize Currency from exporters or change their tax regime.
Speaking about the global oil market, the deputy prime ministry said that prices were nearly balanced at $35 per barrel, and that Russia would have to live in this reality for some time.
"A downward risk is possible due to a number of reasons, and there is always the possibility that the [OPEC+] agreement will be restored in some format and prices will go up," Belousov said.
However, a log period of $20 per barrel is unlikely, because neither producing countries nor consumers need it, he said.
"Therefore, the price can be stable in the range where it has now settled," he said.
However, Belousov did not rule out the possibility of the OPEC+ agreement being renewed.
Finance Minister Anton Siluanov has also said he doubted the possibility of a recession happening this year.
Earlier in the week, Russian Accounts Chamber head Alexey Kudrin said that if oil prices remained at around $35 per barrel, the Russian economy may face zero growth or even a recession this year. But, Kudrin noted that he still expected oil prices to rebound to the $40-$45 per barrel range.
The Russian government's official forecast for GDP growth for 2020 is 1.9 percent. It was last updated in January.
