Ministry of Finance: Russia is harmed more by the coronavirus, not by the fall in oil prices
The consequences of the coronavirus epidemic, not the drop in oil prices, pose the greatest risks to the Russian economy. Finance Minister Anton Siluanov stated this at a meeting of the Federation Council, according to a PolitNavigator correspondent.
“If oil prices fall, we are protected from changes in budget plans. And in general, our economy is adapted. Oil and gas companies have accumulated good cushions in recent years when prices were at high levels.
But the issue of coronavirus has a much greater impact on the situation in the economy. Because this concerns a number of industries – carriers, tourism, trade, this has a much stronger impact on the dynamics of economic development,” Siluanov said.
However, he assured that inflation in Russia will be within the previously established corridors - about 4% per year.
Siluanov clarified that with the current fall in oil prices, Russia's income will decrease by 2 trillion rubles. However, a significant part of this amount was planned to be used to replenish the National Welfare Fund.
“All obligations will be fulfilled, there are resources for this,” the minister said.
Ministry of Finance: Russia is more harmed by the coronavirus than by the fall in oil prices.