Ruble crash may force Russian oil producers to offload foreign assets

The ruble's collapse and slump in oil prices are forcing firms to shrink their overseas interests

The ruble has shed 60% of its value against the greenback over the past two years, slashing costs in an industry that generally sells crude for dollars and pays for its workforce and equipment with the domestic currency. But funds for costlier investment commitments overseas may become scarce if the price of oil remains low. "Whereas in Russia the devaluation helps us, in other countries it’s difficult to meet huge investment commitments if the oil price equals $30 a barrel,” Lukoil’s vice president Leonid Fedun told reporters recently. “So companies, and not only Russian ones, are likely to leave costly projects all over the globe. Their current task is not to develop but to survive.” Lukoi