Good thing Russia signed agreements for supplies by x amount of years. Doing so will mean total amount stays the same, just means that volume changes. So priority will be on reducing costs on extraction while pumping more oil as they will need to meet their obligations (either more oil or less funds).
That being said, it can hurt future oil fields and investments. But the biggest cost in oil is the exploration and drilling. Once site is up, it is real cheap.
I wonder why no one is talking about the fracking industry right now. Fracking needs WTI oil at $85 bbl in order to break even. Right now, WTI is at $75 while brent is at $79.
Wonder how much of a recesson would we look at, with brent at $60? Since oil and gas (combination) accounts for small amount of budget.
Lets say it gets to $60 per bbl, and ruble stays at same value: $60/bbl x 1000 x 45 rubles per usd = 2700000
$80 x 1000 x 45 = 3600000
So thereis a difference but the difference is not enough to make a huge adjustment to the gdp, especially if it accounts for 20% or less of the gdp. If Oil drops, so will Ruble and that somewhat mitigates the change. Oil prices are now changing due to world uncertanty. But Putin will be in India in december for economic development. Talk is that Russia is looking to invest in India big time, especially some sort of new business park being developed in India. Also, oil pipeline.
Gas is Russias number #1 seller. Gas prices are purely based on volume and so I dont see why they cant do same for oil.