Oil: Moscow shows confidence in the standoff against Riyadh

Text by: Etienne Bouche

Stock markets around the world tumbled Monday, March 9, after Riyadh's unilateral decision to lower prices on delivery. This new oil confrontation opposes Saudi Arabia and Russia, Moscow having refused to institute new quotas in order to support its currency. In this global financial vertigo, the Russian government displays its confidence.

Publicity

With our correspondent in Moscow,

This particularly eventful Monday March 9 on the world's stock exchanges was a public holiday in Russia. During this day, the national currency experienced a sharp devaluation while the crude prices fell. The situation was discussed at a government meeting. Energy Minister Alexander Novak said the current scenario was planned.

" The Russian oil industry has a high-quality resource base and sufficient financial margin to remain competitive at any price level, as well as to maintain its market share, " he said.

No longer be vulnerable to external shocks

Russia can count on large financial reserves, which gives it an advantage in its balance of power with Saudi Arabia. The director of the Franco-Russian Observatory, Arnaud Dubien, underlines this. " Since 2014, the common thread of the Russian authorities has been to reduce the country's vulnerability to external shocks, " he explains.

The Ministry of Finance and the Central Bank announced measures to support the ruble. The Central Bank announced its decision to stop buying foreign currency for 30 days.

► Read also: Oil: OPEC and Russia fail to agree on production cuts

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• Saudi Arabia

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