DO SVIDANIYA
That's how you say goodbye in Russian (pronounced das veh-don-yah). Adios, comrades. Finita la musica. The music is over for Putin and all the other commies in the Kremlin.
Putin's personal fortune and the Kremlin's cash cow lies in Gazprom, the Russian gas monopoly that supplies over 20% of the government's budget. Six months ago - last May - Gazprom (GAZP:RU) had the largest market cap of any company in the entire world, US$360 billion. It is now (11/13) $91b. It has lost 75% of its value and so has its share price.
Further, it has made a number of large acquisitions with its stock as collateral. Margin Call City.
That's gas. Let's take oil. The Kremlin says its budget is based on a price of $65 a barrel, while independent analysts think its at least $70. Yet the collapse of benchmark oil prices to below $60 currently masks the fact that Russia sells a lower grade, Urals Crude, than benchmark grades like Brent or WTI (West Texas Intermediate).
Today, Urals crude closed at $48.80.
