The ruble is no longer tied to oil prices, says expert

© RIA Novosti / Vladimir Traveloperator in fotoracconti Russia. Archival photoThe ruble is no longer tied to oil prices, says expert© RIA Novosti / Vladimir Traveloperator the image Bank

Direct relationship between the exchange rate and oil prices are no more, said the managing Director of the group Lombard Odier, Arnaud Leclercq.

«We are now seeing a situation where after a long based on the ruble from oil correlation between them exploded,» he said at a meeting with journalists.

Since the beginning of this year, Brent crude has risen more than 17%. This week the price jumped above $ 79 per barrel to a maximum of 3.5 years. At the same time, the ruble over the same period depreciated against the dollar by approximately 9%.

Leclerc praised the actions of the Bank of Russia on inflation targeting. The expert believes that Russia has overcome the risk of high inflation. According to him, external debt of the Russian Federation is at an acceptable level.

However, while the ruble is «rid» of oil, Russia’s economy remains heavily dependent on the oil and gas industry, said Leclerc. «Still a heavy dependence on the oil and gas industry – we are seeing the one-sidedness of the economy. Another of the cons – the level of corruption and problems with financing some of the projects. It would be nice to «open the tap» and pour money into the economy to lower interest rates on loans to Finance projects. But it should be good projects to make sense to invest,» — said the expert.

«Perhaps the new government of Russia will give greater certainty in terms of project financing. Industry, agriculture and IT can faster develop in Russia and are promising,» he added.

Lombard Odier, founded in 1796, is one of the oldest banks in Geneva and one of the largest financial institutions in Switzerland and Europe. In 2010, the Bank opened a representative office in Moscow.