You're reading: Bloomberg: Debt paradox means Russia borrows more even as oil prices rally

Bloomberg: Debt paradox means Russia borrows more even as oil prices rally

By Bloomberg.
A picture taken on April 10, 2011 shows the Russian LUKOIL ice-resistant fixed platform LSP-1, built at the Astrakhansky Korabel shipyard, intended to drill and operate wells and collect and pre-treat reservoir content at Korchagin's oil field in the Russian sector of the Caspian Sea some 180 km outside Astrakhan.
Photo by AFP

Oil prices near the highest level in over three years are driving the world’s biggest energy exporter deeper into debt.

While Russia stands to reap a windfall from crude’s recent rally, with the budget now on track for its first surplus since 2011, a program of foreign-currency purchases by the Finance Ministry means that it needs more rubles to conduct the operations when the exchange rate appreciates thanks to higher oil prices.

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