MOSCOW, December 26. /TASS/. Russia’s Finance Minister Anton Siluanov expects the ruble’s exchange rate to remain stable in 2018 if the oil price keeps at the level of $55 per barrel and there are no external shocks.
"If the oil price keeps at the current level of at least $55 per barrel, the exchange rate (of the ruble - TASS) will remain unchanged in case of no additional sanctions and external restrictions," he said Tuesday.
According to Siluanov, the dependency of the ruble’s exchange rate on the oil price is declining. "This relates to the budget rule being used more often. We take up to 70% of all oil and gas revenues to the reserves within the budget rule, whereas previously this level was around 30-40%, which means that even the volatility on the commodity market and the capital markets will have a smaller effect on the exchange rate," he said.
The new budget rule (mechanism of Russia’s budget formation, determines the maximum level of spending on the basis of oil prices - TASS) was adopted in the summer of 2017. Starting 2018, additional oil and gas revenues received from the price of Urals crude oil above the base of $40 per barrel in 2017 prices, will be allocated on reserves instead of expenditures. The base price will be adjusted by 2% annually starting 2018.