Russia braces for ‘junk’ downgrade as oil drags

cnbc.com ^ | Jan 14 2015 | Holly Ellyatt

[Berlin_Freeper]

The ruble continues to fall, sanctions are biting and the slide in the price of oil shows no sign of slowing – it's hitting Russia hard and means a credit rating downgrade to "junk" status could be on the way.

Russia's Economy Minister Alexei Ulyukayev said on Wednesday that the chances of the beleaguered country's rating being downgraded to junk were "pretty high," according to the Interfax news agency.

[Berlin_Freeper]

Russia's 2015 budget was based on an oil price of $100 a barrel but prices are now close to six-year lows at just above $46 a barrel.

"The global economy will never again be what it used to be in 2000-07 and the situation in Russia will never be the same,"

[Berlin_Freeper]

gaping hole

[Cowboy Bob]

"The global economy will never again be what it used to be in 2000-07 and the situation in Russia will never be the same,"

Never say never...

[Berlin_Freeper]

The European Parliament will pass tomorrow (15 January) a resolution on Ukraine which strongly condemns Russia’s “aggressive and expansionist policy” and calls for the continuation or even strengthening of the current sanctions regime as long as Moscow does not deliver on the Minsk agreement.

[tcrlaf]

The article is a little behind the curve. West Texas crude just spiked back up to $48.00, with increasing volume.
http://www.nasdaq.com/markets/crude-oil.aspx?timeframe=7d

NYMEX crude is up %5 to over $48.00.

Might just be temporary, but they say to expect “Extreme volatility”.

[tcrlaf]

Russia isn’t the only one in real trouble over oil prices.

Canadian companies are slashing billions in spending (and jobs). Norway seems to be too dysfunctional to be able to react quick enough, hoping that this will all just go away, so they don’t have to cut back the massive welfare state.

Mexico, Indonesia, and the Gulf Countries are all going to be in trouble soon, as well.

[Berlin_Freeper]

Whatever localized or futures market spike you can hang your hopes on is not likely to cause Russia’s Economy Minister Alexei Ulyukayev to change his statement

[Jack Hydrazine]

This means that Russia going to have a lot of junk in the trunk!

[Berlin_Freeper]

Russia suffers international sanctions, unlike some others.

[Junk Silver]

Just keep poking that big old bear.

It’s fun, isn’t it? What could possibly go wrong?

[Berlin_Freeper]

Information is your friend.

[Berlin_Freeper]

Russia needs to reinvent its economic engine, as the current model doesn’t offer appropriate sustainable growth or incentives, Russian Prime Minister Dmitry Medvedev has said. Russia’s GDP does not match its capacity or ambition he added.

[SunkenCiv]

Elvis Presley - Aloha Oe
https://www.youtube.com/watch?v=LeLXcHWxjkQ

[Berlin_Freeper]

What a 'Junk' Rating Would Mean for Russia
Russian officials and experts warned Wednesday that an expected decision by Standard and Poor's to deprive Russia of its investment-grade credit rating could cost the country up to $30 billion and drain more money from an economy that is already entering recession.

[Berlin_Freeper]

"We will have one big state; our entire economy will be under the control of the state,"

[Berlin_Freeper]

Top General Says Russia to Create Aerospace Force in 2015
did not provide any details on the new force's potential deployment.

[Cowboy Bob]

I agree 100%!

[Berlin_Freeper]

instead of watching television, people should grab a shovel and get digging, adding that physical activity is "good for one's health and helps to order one's thoughts".

[Berlin_Freeper]

stunt designed to bring tourists into the Russian town.