“After the oil embargo entered into force, which became part of the sixth package of European Union sanctions, inflation may begin in Russia. The risk of price growth will intensify if the drop in the export of raw materials is significant.” This was announced at a press conference following a meeting of the Board of Directors of the Central Bank of Russia on June 10 by the head of the regulator Elvira Nabiullina.
According to her, the issues of redirecting oil volumes to other markets and the prices at which it will be able to sell is acquired. These factors, in turn, depend on infrastructure and logistics issues, as well as on demand.
At the same time, following the results of the meeting, the Central Bank lowered the annual inflation forecast from 18-23 percent to 14-17 percent. The regulator noted that the further development of the situation depends on the successes of the import substitution program, the scale and speed of restoration of imports of finished goods, raw materials and components.