Russian Northern Fleet completes drills in ArcticMilitary & Defense September 22, 18:01
OPEC and non-OPEC countries to continue talks on oil production cut dealBusiness & Economy September 22, 17:28
Russian pair figure skaters Kavaguti, Smirnov retire from sportSport September 22, 16:48
Record number of delegations register for St. Petersburg-hosted IPU AssemblyRussian Politics & Diplomacy September 22, 16:47
Astronauts to make quickest trip ever to ISS in DecemberScience & Space September 22, 16:27
Russian frigate Admiral Essen returns to Crimea after mission in MediterraneanMilitary & Defense September 22, 16:24
Experts believe Russia not ready for crypto assetsBusiness & Economy September 22, 16:09
Trump vows to put North Korean leader to testWorld September 22, 15:56
Russia's top diplomat presents UN chief with film about him made by TASSSociety & Culture September 22, 15:43
MOSCOW, April 20. /TASS/. If Russia had no sovereign reserves it could have been forced to slash military spending by half and reduce retirement benefits by one third amid current environment, the former Russian Finance Minister and the head of the Civic Initiatives Committee think tank Alexey Kudrin said Wednesday.
"Without this reserve [sovereign reserves - TASS] we would have been forced to cut military spending at least by half already today and decrease wages and pension payments by 20-30% straightaway if there were no reserves," he said, adding that "today those reserves are underestimated."
If the oil price remains at the level of $40-50 per barrel Russia’s budget deficit will reach 4.5-5% of GDP, Kudrin went on to say, adding that this will be the biggest challenge for the Russian economy for the nearest 3-4 years.
"[Russia will face] the biggest challenge for 3-4 years if the oil price remains at the current level of $41-43 [per barrel] or even surge to $50 (per barrel) within three years, even in this case the country’s budget system will have deficit of around 4.5-5% amid commitments made earlier," Kudrin said.