As slumping oil prices dampen Russia’s economic outlook, the country’s President has said that “at some moments of crisis it starts to feel like it is the politics that prevails in the pricing of energy resources”.
Recent tumbles in the value of oil on global markets have been the creation of politicians, Vladimir Putin, President of Russia, suggested on Thursday.
“The obvious reason for the decline in global oil prices is the slowdown in the rate of [global] economic growth which means consumption is being reduced in a whole range of countries”, Mr Putin said.
In addition to this, “a political component is always present in oil prices. Furthermore, at some moments of crisis it starts to feel like it is the politics that prevails in the pricing of energy resources”, he added.
Mr Putin also referred to a “distinct direct link” between physical oil markets and “the financial platforms where the trade is conducted”, in explaining part of oil price changes.
The Russian President also declared that the planned Trans-Pacific Partnership (TPP) free-trade deal – between pacific countries including Japan and the US – was “just another US attempt to build an architecture of regional economic cooperation that the US would benefit from”.
“At the same time, I believe that the absence of two major regional players such as Russia and China in its composition will not promote the establishment of effective trade and economic cooperation”, he said.
Full article: Vladimir Putin: oil price decline has been engineered by political forces (The Telegraph)