The document discusses the impact of falling oil prices on Russia's economy. It notes that Russia is a net exporter of oil, so lower oil prices hurt its economy. In particular, the declining value of Russia's currency, the ruble, has led to higher inflation and worsening debt for companies that borrowed in other currencies. The Russian government attempted to address the currency crisis by sharply raising interest rates.

1. ><BFSU | IBS | INTERNATIONAL FINANCE | SPRING 2016
RUSSIA'S ROUBLE ROLLERCOASTER RIDE
HUN SEO | KORNIETSKAYA ANASTASIA
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Some countries prosper when oil prices decline and suffer
economically when they rise, while the opposite is true for others.
Countries whose economies benefit when the price of oil is low tend
to be net importers of oil, meaning they import more than they export.
Low prices are preferred when doing more buying than selling.
BFSU | IBS | INTERNATIONAL FINANCE | SPRING 2016
DECLINE OF OIL PRICES
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3. ><
Some countries prosper when oil prices decline and suffer
economically when they rise, while the opposite is true for others.
Countries whose economies benefit when the price of oil is low tend
to be net importers of oil, meaning they import more than they export.
Low prices are preferred when doing more buying than selling.
BFSU | IBS | INTERNATIONAL FINANCE | SPRING 2016
DECLINE OF OIL PRICES
3

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TOP RUSSIAN EXPORT
ITEMS
Mineral fuels & oils
Iron and steel
Precious metals
Fertilisers
Machinery
Wood
Aluminium
Inorganic chemicals
Copper
Electronics
Other

5. ><BFSU | IBS | INTERNATIONAL FINANCE | SPRING 2016
WHY ARE OIL PRICES FALLING?
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6. ><
STRONG U.S. DOLLAR | OPEC | OVERSUPPLY | DECLINING
DEMAND | THE IRAN NUCLEAR DEAL
BFSU | IBS | INTERNATIONAL FINANCE | SPRING 2016
WHY ARE OIL PRICES FALLING?
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7. ><
STRONG U.S. DOLLAR | OPEC | OVERSUPPLY | DECLINING
DEMAND | THE IRAN NUCLEAR DEAL
BFSU | IBS | INTERNATIONAL FINANCE | SPRING 2016
WHY ARE OIL PRICES FALLING?
7

8. ><BFSU | IBS | INTERNATIONAL FINANCE | SPRING 2016 8
EXCHANGE RATE

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1元
2013 5.440761 RUB
2016 10.425877 RUB
PERSONAL EXPERIENCE
45000 RUB
2013
2016

10. ><BFSU | IBS | INTERNATIONAL FINANCE | SPRING 2016 10
1元
2013 5.440761 RUB
2016 10.425877 RUB
PERSONAL EXPERIENCE
45000 RUB
2013 8270,90181 元
2016

11. ><BFSU | IBS | INTERNATIONAL FINANCE | SPRING 2016 11
1元
2013 5.440761 RUB
2016 10.425877 RUB
PERSONAL EXPERIENCE
45000 RUB
2013 8270,90181 元
2016 4316,18366 元

12. ><BFSU | IBS | INTERNATIONAL FINANCE | SPRING 2016 12
1元
2013 5.440761 RUB
2016 10.425877 RUB
PERSONAL EXPERIENCE
35000元
2013
2016

13. ><BFSU | IBS | INTERNATIONAL FINANCE | SPRING 2016 13
1元
2013 5.440761 RUB
2016 10.425877 RUB
PERSONAL EXPERIENCE
35000元
2013 190426,635 RUB
2016

14. ><BFSU | IBS | INTERNATIONAL FINANCE | SPRING 2016 14
1元
2013 5.440761 RUB
2016 10.425877 RUB
PERSONAL EXPERIENCE
35000元
2013 190426,635 RUB
2016 364905,695 RUB

15. ><BFSU | IBS | INTERNATIONAL FINANCE | SPRING 2016 15
The weaker ruble is stoking inflation by
driving up prices for imported goods and
creating worsening debts for companies that
borrowed from Western banks.
Now Russians are reportedly bum-rushing malls to swap
cash for washing machines, TVs, or laptops—anything
that seems as if it might hold value better than paper
money, whose worth is evaporating in real time.

16. ><BFSU | IBS | INTERNATIONAL FINANCE | SPRING 2016 16
THE RUSSIAN GOVERNMENT ATTEMPTED TO TAMP DOWN BY RAISING
INTEREST RATES AS HIGH AS 17%.THE IDEA IS THAT IF YOU OFFER PEOPLE
HIGHER INTEREST RATES, THEY'RE MORE LIKELY TO KEEP THEIR MONEY IN
RUBLES.

17. ><BFSU | IBS | INTERNATIONAL FINANCE | SPRING 2016 17

18. DO YOU HAVE ANY
QUESTIONS?
Q&A

19. ><BFSU | IBS | INTERNATIONAL FINANCE | SPRING 2016 19
http://www.bloomberg.com/news/articles/2014-12-16/no-
caviar-is-not-getting-cheaper-everything-you-need-to-know-
about-the-russian-ruble-collapse
http://www.investopedia.com/ask/answers/030315/how-
does-price-oil-affect-russias-economy.asp
http://www.investopedia.com/articles/investing/102215/4-
reasons-why-price-crude-oil-dropped.asp
http://www.bloomberg.com/news/articles/2014-12-16/
no-caviar-is-not-getting-cheaper-everything-you-need-
to-know-about-the-russian-ruble-collapse
http://www.nytimes.com/interactive/2016/business/
energy-environment/oil-price-supply-demand-
imblance.html?action=click&contentCollection=Energy
%20%26%20Environment
%20&region=Footer&module=WhatsNext&version=What
sNext&contentID=WhatsNext&moduleDetail=undefined&
pgtype=Multimedia