With oil prices collapsed in their largest decline in nearly three decades, with Saudi Arabia and Russia renewing rivalry in the oil market, Russia’s Treasury said on Monday that Moscow has sufficient resources to covering budget shortfalls amid oil prices from 25-30 USD per barrel for six to ten years.

Russia’s Ural crude fell below 42.40 USD per barrel on Monday, as global oil prices plummeted by 30% after Saudi Arabia launched a comprehensive price war against Russia following the collapse of OPEC+ talks on Friday.

The 42.40 USD price for the Urals is one that balances Russia’s budget, Russia’s finance ministry announced on Monday, noting that the country’s sovereign wealth fund has liquid assets worth March of 1,150.1 billion USD, or 9.2% of Russia’s gross domestic product (GDP).

These assets are enough to offset weaker oil market revenue due to a drop in prices there, the Treasury said. Even if oil prices remain in the range of 25-30 USD per barrel for a long time, the Russian sovereign wealth fund has enough liquidity to maintain the macroeconomic and financial stability of the Russian economy.

The fund’s liquidity is enough to offset oil prices at 25-30 USD per barrel for six to ten years, the ministry said.

It was OPEC+ quota deal that brought significant economic benefits to Russia, doubling its financial reserves to 124 billion USD in 2019, said Kirill Dmitriev, executive director of the Russian Direct Investment Fund (RDIF).

Some analysts argue that the oil price war will ultimately hurt the Russian economy much more than Vladimir Putin would like. Others say Russia has everything it takes to win the oil price war with Riyadh.

At the same time, the ruble depreciated by almost 10% against the US dollar and the euro, reaching its lowest levels in 4 years.

The US dollar rose by 8.5% to 75.00 rubles, and the Euro rose slightly below 10% to 86.00 rubles, which is the lowest level of the Russian currency since February 2016. It should be borne in mind that at the end of trading on Friday, the ruble was trading around 68.6 against the US dollar and about 77.5 against the Euro.