Russia is under the influence of three economic shocks, said the Deputy Chairman of the security Council of the Russian Federation Dmitry Medvedev. Chief among them, he believes the drop in oil prices.”Today our country is feeling the effects of three economic shocks. First, the drop in oil prices on the world market. This is the main shock, as the domestic economy has remained dependent on exports of hydrocarbons,” wrote Mr. Medvedev in an article for the journal “Russia in global politics”. He added that “the principal negative effect should be expected in 2020, whereas in the next economy will be able in General to adapt to new conditions, regardless of the dynamics of oil prices”.The second shock, according to Mr Medvedev, was the result of regulatory decisions by the state on the background of the coronavirus. “Outwardly, it resembles the situation of the early 1990-ies, when the economic process had a separate economic entities, which led to the disruption of existing ties. But this comparison is extremely conditional. The current problems in the real sector of the economy, labour market, social sphere and the banking sector are of a special character, and the usual approaches to the analysis of economic and financial crises here is not good”,— he added.The third shock is associated with a reduction in foreign demand for Russian goods due to the slowdown in the global economy, says Mr Medvedev. “Today, the reduction of trade and demand in the world is also largely a consequence of restrictive measures and the time lag between economic and logistics links. Therefore, the duration of such drop may be limited by the validity of strict quarantine measures, after which the demand will recover. But there is the threat of a new pandemic, which can cause the world economy a devastating blow, comparable only with the world wars,” he said.Recall that to stabilize the world price of oil of member countries of OPEC+ renew the agreement for largest ever production cuts. Thus, the transaction for the reduction of oil production will last until the end of July.On the situation in the oil market — in the material “Kommersant”.
