REUTERS
Gold and foreign currency reserves in Russia will be sufficient for three years if prices drop to $30-35 per barrel, the expert said.
Economist Borys Kushniruk says Russia's economy is currently not facing a default, as global oil prices have created an additional "safety cushion" for the Kremlin. However, the price of $35 per barrel (now more than $70) may "bury" the Russian Federation.
"Their gold and foreign currency reserves will be sufficient for three years if oil prices drop to $30-35 per barrel. Now the price is over $70," the expert said, commenting on the strengthening of U.S. sanctions against Russia, as reported by the Ukrainian online news outlet Obozrevatel on August 21.
According to the economist, in the next two or three years the default "does not threaten" Russia for sure, because its gold and foreign exchange reserves are growing due to high oil prices.
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"Today they have a rule: if the price of oil exceeds $40 per barrel, the [received] funds are channeled to the National Welfare Fund, rather than to the budget." Thus, they provide a safety cushion for themselves, which will ensure that, at hard times, they have enough monetary resources," Kushniruk added.