S&P Warns Russia Over Oil Price Risks

A trader watches the numbers in Moscow.

Ratings agency Standard and Poor's has warned that Russia faces having its debt rating cut if the price of oil drops significantly.

Standard and Poor's said a fall in the oil price could have a "huge impact" on the Russian economy.

The agency estimates that a $10-a-barrel fall in the price of oil would likely reduce Russian government revenues by $26 billion.

Standard & Poor's said Russia needs an average price of oil of $120 per barrel to balance its budget this year.

It suggested that oil is likely to remain above $100 per barrel, but said there is a chance of a sharp decline.

Based on reporting by AFP and BBC