Russia's response to low oil prices - can it cope with the crisis?

Russia is hugely reliant on the upstream sector for the health of its economy. The unprecedented troika of low oil prices, coronavirus and falling demand will test the resilience of the Russian upstream. What the Russian government and operators do next will be critical for the future of the country’s upstream. We share our initial views on how well the Russian upstream sector can withstand the near-term shock and what it might need to do to minimise the negative impact: • Why did Russia exit the OPEC+ deal? • What is the impact of coronavirus on the upstream and government thinking? • How well prepared is Russia’s upstream for coping with the crisis? • What will Russia do next? Please do not hesitate to contact us for more in-depth discussions on the outlook.