If oil prices remain at current levels, Russia will receive an additional 2 trillion
The Russian government expects that in the second half of 2017, oil prices will stabilize at today’s level – around $55 per barrel. At the same time, the country’s budget is calculated based on $40 per barrel.
Russian President Vladimir Putin announced this today at his final press conference.
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“We expect that limiting production will lead to an increase in oil prices. This has already happened. If this state of affairs continues, a difference in prices of 10 dollars will mean additional income to the budget of 1,75 trillion rubles, and for oil companies - 750 billion rubles. In the end, everyone will win,” Putin said.
He recalled that the 2015 budget was calculated based on $50 per barrel, but it turned out to be $40.
“Despite this, GDP trends have changed, inflation is low, and we have maintained reserves. This, by the way, is an essential element in the analysis: the situation is worse in the global economy, but our result is better. This means that our economy has adapted and will develop on this basis,” Putin said.
The level of decline in Russian GDP decreased from 3,7% in 2015 to 0,5% this year. The country has a record low inflation of 5,5%. The government's reserves amount to $100 billion, the Central Bank's - $355 billion.
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