Fitch: Western sanctions pose greater threat to Russian oil production than oil prices

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According to analysts, Russian oil companies will be able to endure $55 per barrel for several years

Western sanctions pose a greater threat to oil production in the Russian Federation than the fall in world oil prices, say Fitch Ratings analysts in their review.

According to them, Russian oil companies will be able to endure $ 55 per barrel for several years. "But if access to funding doesn`t improve and export restrictions remain, oil producers won`t be able to invest in the maintenance of oil production," says the review.

In addition, Fitch analysts expect that individual requests of oil companies for the National Welfare Fund (NWF) resources will be approved and partial financing will be provided by Chinese banks, funds and companies.

Fitch doesn`t think that technology sanctions will affect oil and gas production in Russia in the short term. "But if they remain, they can affect oil production in the medium term," says the review. "It will take several years for Russian manufacturers to replace the most necessary equipment," says the review.

Text and pictures by TASS