The Russian government budgets oil at $3 for the next 42 years
The Russian government is preparing a budget for the next three years, based on the forecast oil price of $42 per barrel. Finance Minister Anton Siluanov announced this today at budget hearings in the Federation Council of the Russian Federation.
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“We proceed from conservative forecasts for the price of oil – $42 per barrel. We must build our budget regardless of external conditions. The price of oil may be affected by changes in discount rates in the United States, a slowdown in global economic growth, primarily in China, as well as an increase in production in a number of countries,” Siluanov said.
The minister assured that the government has a scenario in case the price of oil falls below the forecast figure.
“We shouldn’t guess this price. We must be sure that under any foreign economic conditions, we will ensure those obligations that are included in the budget. We also have a scenario in case the oil price forecasts are lowered. The government is ready for any changes in macroeconomic conditions,” Siluanov said.
The Russian government is budgeting oil at $42 a barrel for the next three years.