Cbank analysts say oil price limit can undermine Russian economy

MOSCOW, Dec 7 (PRIME) -- The price ceiling for Russian oil and a prohibition of Russian oil and oil products exports to Europe by sea are a new shock capable of significantly reducing the economic activity in Russia, the research and forecast department of the central bank reported Wednesday.

"Among the new economic shocks capable of significantly reducing economic activity in the next few months, a prohibition on exports of Russian oil and oil products to Europe by sea and introduction of a price limit on Russian oil, entering in force, are prominent," the analysts said.

According to the analysts, oil production in Russia fell insignificantly in October, while further dynamics depends on the effect of the restrictions by the unfriendly states. The oil price limit can be retaliated by reduction of oil exports.

The analysts also said that partial mobilization triggered a small economic decline, but the economy stabilized in November, partially, due to higher state orders.

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