Russian economy to shrink due to low oil prices
Russia 
MOSCOW, November 30, 2015 – The continued low oil price will have a severe impact on Russia’s economy in 2016 if it stays at $50 per barrel or lower, says the country’s central bank. The bank estimates GDP will shrink by 1 percent next year, in addition to the 3.9-4.4 percent this year on the current barrel price.
Declining oil revenue is a key risk for the Russian economy, as the ruble has fallen 32 percent against the dollar since November 2014, making it at points the worst-performing currency in the world.
Analysts at Goldman Sachs said on November 18 that a warm winter would reduce heating global fuel demand, causing the price of crude to dip even lower. With oil exports making up half of state income in Russia, at an average production rate of 10.7 million barrels per day, the dip could lead to economic destabilisation.
The Russian government proposed to levy higher taxes on energy companies in September, which was met with a letter from heads of domestic oil companies pointing to a potential 100-million-tonne loss in oil production in the next three years as a result.
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