Economist Inozemtsev: Putin will not twitch with modernization, even if oil prices fall below $25

In the case of falling oil prices, Russian President Vladimir Putin will not agree to the modernization of the Russian economy and the Russian government devalues the ruble, said the Director of the Centre for post-industrial studies and Professor at the Higher school of Economics in Moscow Vladislav Inozemtsev.

He told about it in interview to the Internet newspaper Sign.

«Putin will not twitch with modernization, even if oil prices fall below $25. In this case, he will jump only in the direction of new aggressive actions in the international arena. The fact that we have developed a standard approach: if the Americans have the dollar, which if necessary can be printed as many in Russia to devalue the ruble and in any dollar price of oil rubles will be enough to balance the budget, and no matter what these roubles food buy less than five years or a year ago,» explained the economist.

Inozemtsev said that despite problems in the Russian economy, Russian citizens are not satisfied with the «March of the pots», as the inhabitants of Venezuela.

«As long as people do not show that they are bad, will only get worse. And Putin is well aware that it will not work, and operates completely adequately. Putin is a good politician, he knows and feels the country ruled, understands how to treat its people. And apply,» – he stressed.

According to the economist, the roots of such behavior of the population and this attitude has developed in Russia historically, because in Russia the ruler is equated with the state.

«The words themselves «sovereign» «state» come from «ruler» – the owner, the owner. In the West, the notion of the state not linked to the concept of the possession in the Russian language: state – the status, scope of function, land – land, land. We have the same state is an instrument of possession rule over us. Therefore, in the most dramatic times of the Russian people has been raised in the state, which he had to be willing to destroy, and then humbly returned to freedom, again and again, completely irrational getting up under the yoke», he concluded.

At the end of November 2016, OPEC decided to cut production by 1.2 million barrels to 32.5 million a day – for the sake of increasing fuel prices. 11 countries that are not members of the organization, but also produce oil, have joined the deal. The total reduction amounted to 1.8 million barrels.

25 may 2017 OPEC countries agreed to extend the reduction of oil production for another nine months – until March 2018.

Today, as of 16.40, the price of a barrel of Brent crude oil is $62,15.

Economist Inozemtsev: Putin will not twitch with modernization, even if oil prices fall below $25 05.11.2017

Ноябрь 5th, 2017 by
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