Influence Oil Price towards Economic Indicators in Russia

This paper examines the effect of oil price shocks on the Russian economic indicators using time series for the period 1991-2016 year to cover all of oil price shocks. We use the method of vector autoregressive (VAR) and the Dickey-Fuller test (ADF) were utilized to investigate the long-run and the short-run relationships between variables. From the results shows that one of the most important external impact factor is the world price of oil. This research work suggests a positive and significant long-term relationship between oil prices and Russian GDP dynamics. The study recommended a reducing the dependence of the Russian economy on energy resources, including oil, the transformation of the economy from industrial to innovative and improvement of the investment climate in the country for a foreign investor, the stabilization of foreign economic policy, which should lead to the abolition of anti-Russian sanctions. Apart from the fact that this will make the Russian economy more attractive for foreign investments, the opportunity will again become one of the main players in the oil market.