Russia’s Sberbank stress testing scenario with oil price at $25

MOSCOW, Jan 12 (PRIME) -- Top Russian lender Sberbank has started stress testing a scenario with oil price falling to U.S. $25 per barrel, CEO German Gref told reporters Tuesday, adding that the exchange rate of the ruble against the U.S. dollar may fall to 80 in this case.

“$30 (per barrel) was a pessimistic scenario in our business plan, it became real at the beginning of the year. Sure, we have already started testing $25 (per barrel), but it is a difficult scenario now,” Gref said.

At the same time, oil price is unlikely to stand at $30 per barrel or lower for a long time, he added. “If it lasts long, it will be very painful for the economy, of course,” he said, adding that a long period in his view is six months to one year.

“I am not very pessimistic. I believe that the price will not remain at these levels for long. But I am not very optimistic too and do not think that it will rebound significantly, but it is an abnormal collapse,” he said.

The ruble depreciates against the dollar not as fast as oil price falls. Brent price tested a record low of 2,400 rubles earlier on Tuesday. In 2015, the figure fell gradually from about 3,800 rubles per barrel of Brent.

(75.9507 rubles – U.S. $1)

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