Russia & CIS

The OPEC+ deal to cut oil production is a failure that Russia has suffered, some analysts believe. As part of the deal, Russia's decrease in oil output would be larger than that of Saudi Arabia. To crown it all, the Americans did not take any written obligations at all. Why is the deal a failure for Russia? Under the terms of the agreement, Russia and Saudi Arabia are supposed to reduce oil production in May-June by 2.5 million barrels per day each from the current level of 11 million barrels per day. Russia's current obligations are four times as much as in early March of this year, when the previous OPEC + deal fell apart. Sources in the Kremlin called the agreement a "painful failure," while adding that the deal is a relief for Moscow. They are forced measures that Russia has to accept as a result of the pandemic of the coronavirus infection, as if this applies only to Russia ... Andrei Nechaev, former minister of economy of the Russian Federation is not happy either. Referring to experts' estimates, he noted that "Russia's oil export revenues would be halved, because it is export that would need to be cut in the first place." "This is the price of the affair to terminate relations with Russia in the previous OPEC+ deal. Russia had to apologize to the allies, whom Russia had been deceiving for three years without cutting production, but increasing it under the guise of solidarity statements. Now control will be tight, while severe violations will be punishable with sanctions. It is all Russian people who will have to pay for this affair,"Mr. Nechaev predicts. Leonid Fedun, co-owner of Lukoil, said in an interview with RBC that the current deal was similar to the Brest Peace of 1918 - it is humiliating and difficult, but necessary. According to Fedun, the deal will provide a price level for Russian oil at $30-40 per barrel instead of $15-20.

Illegal migrants are a potential source of COVID-19 in Russia, just like in many other countries too. They are not welcome at their home countries, but they cannot leave Russia either. It is unclear what they can do about their situation, nor do we know what the authorities are going to do about them either. According to the Ministry of Internal Affairs of the Russian Federation, there are 2.5 million migrant workers in Russia. During the coronavirus pandemic, they lost their jobs and wanted to return home, but they could not. From March 18 to May 1, 2020, Russia closed borders to all foreign citizens to prevent the spread of the deadly infection. In this regard, the Russian authorities allowed migrants to renew their patents in Russia. Legal migrants have a compulsory medical insurance policy, so this contingent will receive the required medical assistance. The leaders of post-Soviet republics try to take care of their citizens. For example, Tajik Ambassador to Russia Imomuddin Sattorov sent an appeal to the Russian government with a request for tax "holidays" for his compatriots in Russia. If the Russian government satisfies his request, it will be forced to take similar measures in relation to migrants from other countries. This request has its lobbyists in Russia, because by accommodating migrants, usually without proper social guarantees, businesses save up to 40 percent in construction and utilities by reducing production costs. Legal migrants will find work after quarantine ends.

Russia Sends Humanitarian Aid to the US  A Russian military plane headed from Moscow to the United States on Wednesday (1) loaded with medical equipment, including masks, to help the United States fight the coronavirus pandemic, where 240,000 people are infected and over 5,000 have already died from the COVID-19.  Moscow decided to help Washington on Monday (30), after a telephone conversation between Russian Federation President Vladimir Putin and US President Donald Trump, in which both officials discussed how they could more efficiently fight COVID-19.

As the coronavirus pandemic is gathering pace, the global economic crisis is looming. Putin's decision to extend the non-working regime in the Russian Federation for a whole month, until the end of April, will show an extraordinary and enormous influence on the Russian economy. This decision caused a lot of controversy, but, as Putin's official spokesman Dmitry Peskov said, people's health is more important. The Kremlin considers various scenarios of the development of the economic crisis in Russia. The current state of affairs in the Russian economy falls under the concept of the perfect storm: several major factors work together to cause the economy of Russia to tailspin. It goes about the coronavirus pandemic the decline in oil prices the devaluation of the Russian currency, the ruble, a decline in consumer demand, etc. It appears that there is nothing but negativity around, and there is no light at the end of the tunnel.

Maria Zakharova, an official spokesperson for the Russian Foreign Ministry, wrote on her Facebook page that the Office of the Foreign Ministry of the Russian Federation receives many calls and emails from Russians living in other countries, who ask the department to help them or their relatives return to Russia due to the closure of flights and borders. According to Zakharova, some "very rich" people called and said they wanted to send a private jet to London "to pick up their boy who has been living there for a long time and fly him over to Moscow." When the person was asked why they wanted to bring the boy back home to Russia, the caller responded that the British authorities canceled health insurance policies for foreigners, so every foreigner residing in the UK now has to pay a lot of money for healthcare services. "You have been fooled for so many years and you have been paying for it - you have been paying gold for decay, for an illusion, instead of supporting your country and your people, who, with titanic efforts, patience and love have been restoring after the collapse of the USSR and chaos of the 1990s," responded Zakharova. "You were buying real estate and building business there, but when you were shown the door, you are standing in lines at airports of the world screaming: "We are Russian citizens!" while blowing dust off your Russian passports," Zakharova wrote.

One dollar was traded at a rate of 82 rubles on the Forex market, while the euro was already worth 90 rubles. On March 19, the ruble exchange rate reached 81.97 per dollar (the highest rate since January 2016) at the Moscow Exchange, and the euro - 89.6 rubles (the highest rate since February 2016). The Russian ruble has been recognized the most volatile currency in the world after the Mexican peso against the backdrop of the coronavirus pandemic and the disruption of the OPEC deal. Russia is going to face even more stressful scenarios, because the oil price may drop to $20. A few days ago, WTI crude oil was traded at $23 per barrel - this is the lowest level for the last 18 years. If this happens, the value of the US dollar will rise over 90 rubles. Many companies may experience bankruptcies and production problems, to say the least. On March 20, the Central Bank of the Russian Federation is to have a meeting to discuss the key rate. If the US dollar hits the level of 90 rubles, the Bank may resort to currency interventions on the currency market to lower risks to financial stability. In the meantime, the Central Bank sells foreign currency in small volumes evaluated at 3.6-5.5 billion rubles per day, instead of buying it under the fiscal rule. Market participants are waiting for the government to take action, but the action is not coming. So far, the ruble and the market has been following the oil prices, and investors are not leaving the Russian market.

Valentina Tereshkova, who currently serves as a deputy of the ruling United Russia party, took advantage of an opportunity to support the constitutional construction of her nation for the second time in a lifetime. During the times of Leonid Brezhnev, in her October 1977 appeal, Valentina Tereshkova thanked the party, the CPSU Central Committee, and Leonid Brezhnev personally for their work on the text of the new Constitution of the USSR. In the era of sanctions and import substitution, Tereshkova, first woman in space, also expressed her gratitude to the Russian leader and unpretentiously proposed to reset his presidential term to zero and start the countdown again. In other words, she suggested Putin should stay in power before 2036 and then before 2048 - for life that is. Putin likes zero Vladimir Putin, speaking before the State Duma, said that Russia was still overcoming consequences of the collapse of the Soviet Union. Apparently, we should be happy that the country has been able to leave behind the legacy of the Golden Horde and the devastation after the Patriotic War of 1812. The head of state noted that he considers the change of power to be important, but...:

During the talks in Vienna, the Saudis proposed lowering oil output by 1.5 million barrels per day during the second quarter of the current year in response to the coronavirus epidemic and a downturn in global demand, which, according to Goldman Sachs estimates, could exceed two million barrels per day. Russia, in the person of Energy Minister Alexander Novak, flatly refused to reduce production and only proposed to set current production volumes for another quarter. Riyadh turned the offer down. The next day, global markets collapsed, the ruble lost ten percent of its value against the dollar. Russian oil companies have long wanted to exit the deal: OPEC+ was favored only by those companies that were developing no new deposits and had no opportunity to increase production on old ones. It goes about such companies as Lukoil. Its top manager Leonid Fedun announced that the decline in oil prices after the failure of negotiations with OPEC could lead to a loss of $100-150 million per day. It could be true, but one can win the game by sacrificing a pawn. Many analysts believe that Russia should have left the deal long ago as Russian companies were losing their part of the market and could not invest in new deposits.

The trees and bushes have burned on the area of 2 hectares near Khachmazgyshlaq village of the Oghuz region APA reports citing the website of the Ministry of Emergency Situations MES

Azerbaijans Cabinet of Ministers has adopted a decision About making a change in The goods nomenclature of foreign economic activity of the Azerbaijan Republic degrees of import customs fees and degrees of export customs fees the press service of the Cabinet of Ministers told APA

We are also vehemently fighting attempts to distort the truth about the Great Patriotic War attempts to rewrite history and attempts to glorify fascism and fascists Azerbaijans President Ilham Aliyev said while receiving a delegation led by Governor of the Rostov Region of the Russian Federation Vasily Golubev Trend reports

The farewell ceremony for the soldier of the State Border Service SBS Garayev Eltun Elman martyred as a result of the fire opened by the Armenian armed forces was held at his native Gazgurdaly village of Barda region APAs local bureau reports

Azerbaijan continues measures to prevent the threat of coronavirus COVID19 Report informs citing the Operational Headquarters under the Cabinet of Ministers

On March 7 this year while performing his service duties at the border battle station situated near Dash Salahly village of Azerbaijans Gazakh region our soldier Garayev Eltun Elman was killed as a result of the fire opened from a firearm by the Armenian armed forces the Ministry of Foreign Affairs of the Republic of Azerbaijan informed

The government of Azerbaijan has decided to donate 5 million of financial aid to the Islamic Republic of Iran in its fight against the coronavirus outbreak COVID19 the Cabinet of Ministers of Azerbaijan told AzerTag reports

Turkey and Russia will start joint patrols in Idlib northwestern Syria on March 15 under the ceasefire for the embattled province reached this week Turkeys defense minister said Friday Anadolu Agency reported

DirectorGeneral of the World Health Organization WHO Tedros Adhanom Ghebreyesus expressed gratitude to Azerbaijan for financial contribution to the global fight against coronavirus COVID19 Trend reports on Mar 7

Chairman of the Azerbaijan Railways CJSC Javid Gurbanov met with a delegation led by the Minister of Economic Development of the Rostov Region of the Russian Federation Maxim Papushenko Trend reports

Oil prices have decreased on the world markets

The death toll from the Lassa fever outbreak in Nigeria has risen to 132 with a case fatality rate of around 17 percent according to data by the Nigeria Center for Disease Control NCDC Reuters reported