Russian credit lines threatened as oil price bombs in wake of Iran detente

Russian credit lines: Russia could be forced to suspend loans to foreign countries as the country’s budget continues to be strained by the economic recession, Deputy Finance Minister Sergei Storchak warned yesterday. “The budget is strained – more than strained,” he said. “I think we are in a situation where we may be  forced to take a break from issuing new loans.”  
Russia’s federal budget for 2016 was based on an oil price of $50 per barrel, but, with the lifting of sanctions against Iran pushing the price of Brent crude down to $28, that is now coming under considerable pressure.
Among the loans in question is the $5bn that Iran requested last year for the implementation of joint projects, including the construction of power plants and the development of its rail network. Negotiations on Russia’s $5bn loan were still ongoing  and no final decision had as yet been taken, Storchak added.