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Oil price plunge to $60 per barrel unlikely — Russia’s Finance Ministry

October 01, 2014, 15:21 UTC+3 MOSCOW

The Russian Finance Mnistry has worked through a stress scenario of oil prices falling to $80 per barrel

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MOSCOW, October 1. /TASS/. A world oil price plunge to $60 per barrel is an unlikely scenario, Russian Finance Minister Anton Siluanov said on Wednesday.

“We believe this is unlikely,” the finance minister said, adding the budget of Saudi Arabia, a major oil exporter, was balanced at the oil price of $80-85 per barrel.

Russia’s draft budget for 2015, which envisages a deficit of 0.6% of GDP, is based on an oil price of $96 per barrel.

The Russian finance minister said the ministry has not examined a stress scenario of an oil plunge to $60 per barrel.

“We had a stress scenario of $80 per barrel,” Siluanov said.

The Russian government has mapped out a number of measures, if world oil prices fall sharply, the finance minister said.

“In this case, we plan to use the unallocated reserve in the budget. It totals 70 billion rubles [$1.7 billion at the current exchange rate] so far but we hope to increase it by 100 billion rubles [$2.5 billion],” the finance minister said.

“Second, this is the right to spend 500 billion rubles [$12.7 billion] from the Reserve Fund,” Siluanov said.

The Russian Finance Ministry’s measures will depend “on changes in the macro-economic situation,” Siluanov said.

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