“Despite the high dependency of Russia on commodity prices, markets don’t believe in the possibility of default: CDS spread has been stable for the last few years and taking into account only 35.67% of the external debt to GDP, Bloomberg model applies a low risk,” according to a Seeking Alpha analysis of Russian markets.
Russian stocks recently got a lift after President Vladimir Putin said Russia, the world’s largest energy exporter, is ready to join OPEC in limiting oil production with either a freeze or a cut, Bloomberg reports. Looking ahead, Putin hoped OPEC would agree in November to limit crude oil production and promised Russia was ready to back such a decision. Russia is the largest non-OPEC producer in the world.
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“Based on the forecasts, Russia is predicted to slowly recover from the recession, with only 1.5% of GDP growth in 2018. On the other hand, inflation is predicted to decrease by 4.5%, while currency is expected to depreciate by 12%,” adds Seeking Alpha.