It is estimated Russia’s revenues from friendship with Saudi Arabia

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Photo: Fahad Shadeed / Reuters

The OPEC agreement regarding the reduction of oil production and a good relationship with Saudi Arabia has brought the Russian budget of four trillion rubles in two years. In an interview with NTV said the head of the Russian direct investment Fund (RDIF) Kirill Dmitriev.

“Thanks to the work of [Russian President Vladimir] Putin with the king and the crown Prince of Saudi Arabia relations are in a unique phase and this has good implications for the budget. We believe that more than four trillion rubles received in addition to the Russian budget thanks to this deal with Saudi Arabia,” — said Dmitriev.

According to him, the current situation can be considered “very good, powerful, strong time for Russia.” In addition to the General development of the economy and stable oil prices, an additional factor for this was the good organization of the world Cup. “And all countries that were very skeptical of Russia, a lot of information was wrong about Russia, they are forced to admit that the world Cup lasts just perfectly and positively”, — said the head of RDIF.

On June 23, the parties to the agreement OPEC agree to increase production by a million barrels a day. Russia will need about 200 thousand barrels per day. This was done in order to compensate for the production decline in Venezuela due to the local crisis and possible embargo of oil from Iran.

30 June the US President Donald trump said that he was able to persuade the king of Saudi Arabia Salman to increase oil production by about two million barrels per day. According to analysts, due to the fact that the Republicans, which is the trump, it is necessary to reduce sharply higher gasoline prices ahead of the elections to Congress. It is possible that the ban on the purchase of oil from Iran may instead lead to growth of quotations.

At the end of March the crown Prince of Saudi Arabia Mohammed bin Salman said that he would like to conclude with Russia a bilateral agreement on the conditions of production of “10-20 years”. According to him, both countries have already discussed the “big picture agreement”.

In December 2016, the 13 OPEC member countries and 11 exporters outside the cartel, signed an agreement on the reduction of oil production to 1.8 million barrels a day by October 2016. The share of Russia had a reduction of 300 thousand barrels per day. The main purpose of the agreement was called the desire of exporting countries to reduce oil supply on the world market and improve prices. Since then, the price of a barrel of Brent increased from 50 to 78.6 dollar.

Video, photo All from Russia.

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