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Page added on March 21, 2015
Ex-Soviet states battle challenge of low oil prices
The three main members of the Russian-led Eurasian Economic Union face a big economic challenge from the fall in global oil prices, Kazakh President Nursultan Nazarbayev said on Friday.
But, speaking before talks in the Kazakh capital Astana with Russian President Vladimir Putin and Belarussian President Alexander Lukashenko, Nazarbayev said the situation had become more stable.
Belarus and oil producers Kazakhstan and Russia are joined by Armenia in the Eurasian Economic Union. A fifth former Soviet republic, Kyrgyzstan, is due to accede to the political and economic bloc this year.
Referring to relations with Russia and Belarus, Nazarbayev said: “Unfortunately, our union is now being tested by great challenges, because export prices have fallen, especially in Russia and Kazakhstan, for oil and other export commodities.”
He added that “measures have been taken and everything has now been stabilized.”
Putin said before the talks: “We face a really difficult situation in the global economy. Taking into account the situation on the markets.”
But he expressed hope that Russia’s partnership with Kazakhstan would “help us overcome the difficulties.”
The fall in oil prices and Western economic sanctions over Ukraine have worsened an economic slowdown in Russia in which the rouble has dropped sharply against the U.S. dollar.
The ruble’s decline has hit former Soviet trading partners such as Belarus and Kazakhstan. Belarus devalued its own rouble in January and there has been speculation on markets that Kazakhstan may soon devalue its tenge currency.
7 Comments on "Ex-Soviet states battle challenge of low oil prices"
Plantagenet on Sat, 21st Mar 2015 7:09 am
When Putin adopts a dumb policy, the entire Eurasian Economic Union suffers for it.
Davy on Sat, 21st Mar 2015 7:26 am
This is what happens when you have a basket case banana republic that relies on a volatile commodity like oil. If Shorts ETP is correct then high prices are not going to return except maybe in some violent gyration which itself is worse. So, the Ex-Soviet nations face descent.
If you pro-westerners are salivating don’t because this is BAU and BAU delivers the oil that keeps food on your table. The ex-Soviet basket case banana republics supply you with oil that puts food on the table. This is of course not that simple but it is that simple.
Oil is a global commodity that supports a global BAU. All locals rely on a global BAU for support. We will see the low prices tank the banana republics. This will tank the disguised BAU dependents which are in effect banana republics themselves being naked without BAU.
It will be one vicious cycle down of BAU dependent nations falling down into a hole. Each and every one of us is BAU dependent globally all the way down to the local and further down to you forum friend.
Makati1 on Sat, 21st Mar 2015 7:34 am
Plant, you do surprise even me with your inability to grasp that Washington started this and is causing the problems. Russia prevented the US from going to war with Syria, and is standing beside Iran in it’s negotiations. If you remember, it was shortly after that event that the US overthrew the elected Ukraine government and started the civil war there.
Do you really think that if Russia wanted the Ukraine, that it would not have taken it when the US backed Nazis started killing women and children in east Ukraine? It was the perfect ecuse and the world would not have cared. Ukraine would fall in days or a week at most if Russia really invaded, but it hasn’t…yet. Putin still wants Russia to be a part of Europe economically and is holding back.
Putin is playing chess, and winning. Germany and France are already shying away from sanctions and trying to negotiate a peaceful settlement. They are waking up to the fact that the US wants Europe weakened and the Euro destroyed. It was becoming too strong and a rival for the USD.
Another war in Europe would cover up the many problems coming home to the US in the near future. As long as it is on someone else’ soil, war is good for American business. Germany is beginning to see that they are being used and abused by their US ‘partner’ and are inching away and towards Russia.
We live in interesting times.
GregT on Sat, 21st Mar 2015 1:08 pm
“This is what happens when you have a basket case banana republic that relies on a volatile commodity like oil.”
What do you mean Davy? That because they don’t have enough oil for themselves they need to plunge the rest of the world into chaos?
http://www.alternet.org/economy/10-ways-america-has-come-resemble-banana-republic
Here are 10 ways in which the United States has gone from bad to worse, and is looking more and more like a banana republic in 2013.
1. Rising Income Inequality and Shrinking Middle Class
2. Unchecked Police Corruption and an Ever-Expanding Police State
3. Torture
4. Highest Incarceration Rate in the World
5. Corrupt Alliance of Big Business and Big Government
6. High Unemployment
7. Inadequate Access to Healthcare
8. Dramatic Gaps in Life Expectancy
9. Hunger and Malnutrition
10. High Infant Mortality
Davy on Sat, 21st Mar 2015 1:51 pm
Read my comment Greg. If you did you will see at the end I equate the west I.E. US as a disguised banana republic. All BAU nations are together in a banana republic status with BAU as the common theme.
GregT on Sat, 21st Mar 2015 2:01 pm
Sorry Davy,
I misread what you wrote, and I agree with you.
Makati1 on Sun, 22nd Mar 2015 4:14 am
Interesting site that is saying the same things I have been saying…
http://prayforcalamity.com/2013/11/06/pray-for-calamity/
“If there is anything left to hope for, hope for calamity. Absolute and total industrial collapse is the only hope left for life on Earth should extinction of most, if not all life forms, not already be a certainty….”