Putin warns of global impact of coronavirus in meeting with oil companies

Russian President Vladimir Putin has warned of the impact of the coronavirus on the world economy and in the oil market at an extraordinary meeting with the country's major oil companies. “The negative consequences have already been revealed, affecting the entire system of global economic relations, practically all states, given the enormous interdependence and interrelationship between economies that exist today”, Putin said, according to local agencies.

Putin has brought together, in addition to the ministers of finance and energy, and the head of the Central Bank, the presidents of the main Russian oil companies: Rosneft, Lukoil and Gazprom Neft. “I decided to meet with the heads of the major hydrocarbon companies and think about how we will react to what is happening now in the world economy. As far as the impact of the coronavirus outbreaks on the economy is concerned, we must pay special attention, how to react to what is happening”, he said.

Putin noted that last week “was the worst for the world markets since the 2008 crisis” both in China, whose economy is suffering especially from the impact of the epidemic that broke out in the city of Wuhan, and in the world stock markets. He also said that, “in general terms”, the situation in the fight against the coronavirus in Russia "is under control" and that current oil prices are “acceptable” for the Kremlin.

However, it has insisted on the need to act, which should include “joint” actions with other countries to minimize the impact of the epidemic. In this respect, he pointed out that next week OPEC+ will meet in Vienna, which he considered to be an effective instrument' for ensuring stability in world energy markets.

Putin also expressed his conviction that the reserves accumulated will allow Russia to confront any negative trend in hydrocarbon prices. While the World Health Organisation (WHO) raised the level of risk of the spread of the coronavirus to “very high”, which already affects 50 countries, the prices of a barrel of Brent oil, North Sea crude oil and Texas intermediate oil, which closed on Friday with their worst results since 2008, fell.