Russia cuts oil output by 200,000 barrels a dayBusiness & Economy March 30, 8:09
Russian historical epic Viking to be released in Italy, UKSociety & Culture March 30, 2:11
Putin visits ice cave during Arctic tourSociety & Culture March 30, 0:02
Moscow slams West’s reaction to Russian protests as part of long-planned campaignRussian Politics & Diplomacy March 29, 23:56
Putin orders Defense Ministry and FSB to ensure protection of Russia’s interests in ArcticMilitary & Defense March 29, 21:46
Kiev aware of few chances to win in debt lawsuit case — envoyBusiness & Economy March 29, 20:52
Russian top diplomat dismisses claims about human rights violations in Crimea as liesRussian Politics & Diplomacy March 29, 20:23
Moscow suspects Jabhat al-Nusra could be used to topple AssadRussian Politics & Diplomacy March 29, 19:58
Lavrov reiterates there are no facts substantiating Iran’s links to terroristsRussian Politics & Diplomacy March 29, 19:40
DAVOS, January 20 /TASS/. Russia’s budget deficit will amount to 6% of GDP in 2016, if the average price of oil is $30 per barrel, former Finance Minister Alexey Kudrin told TASS.
"With the price of oil at $30 per barrel the budget deficit will be 6% or more," Kudrin said on the sidelines of the World Economic Forum in Davos.
Russian authorities should give up hopes that oil prices will rise again and determine the long-term strategy of reforms in 2-3 months, Kudrin went on to say.
"Russia should understand one thing. We should give up hopes to high oil prices and do that unconditionally," the former minister said.
The level of $35-40 dollars a barrel can be taken as a target for budget calculations, Kudrin said. Windfall profit should be collected, if any, he added.
"The recent crisis shows everything may occur on the oil market. We need to understand oil prices may reach very low values, while social policy, defense potential and infrastructure should not be exposed," Kudrin said.
Oil prices may return to levels of $40-50 a barrel but it will take place in the long run, the ex-minister said. The government should determine the long-term strategy of reforms, he added.
"The nearest two-three months for Russia is time to work out an answer to all these challenges. Russia should decide not merely for this year but on its strategy as well," Kudrin said. Existing problems can not be resolved within a year, he added.
"The task of the government is to make the Russian economy sustainable at any all prices," Kudrin said.