A looming fall in gas exports adds to concerns in Russia

Because Russia’s export gas price seems to follow oil prices with a six to nine month lag, the recent fall in oil prices has not yet fully fed into Russia’s gas export earnings. Admittedly, gas exports are much less important for Russia than exports of oil and oil products. But even so, a reduction in earnings from exports of gas would add to the strains on Russia’s balance of payments and cause a further deterioration in the public finances.