Fitch: Russian oil firms to cut invest 10–20% amid low oil prices

MOSCOW, Mar 25 (PRIME) -- Russian oil companies will have to reduce investments by 10–20% amid the current extremely low oil prices, Dmitry Marinchenko, senior director for natural resources and commodity goods group at international rating agency Fitch, said on Wednesday.

“Russian companies are better protected from the risk of falling oil prices due to the peculiarities of taxation, a flexible ruble exchange rate and relatively low costs, but with ultra-low oil prices, as they are today, they will also have to revise capital investment programs,” Marinchenko said.

The ruble price of oil fell 1,600 rubles per barrel currently from 4,100 rubles per barrel in 2019, or by 60%, he said.

“Most likely, Russian companies will have to reduce capital investment programs by at least 10–20% this year in order to balance cash flows if prices remain low,” the expert said.

(78.8493 rubles – U.S. $1)

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