Ministry of Finance of the Russian Federation
Ministry of Finance of the Russian Federation
25.04.2011

Statements of Deputy Head of the Government of the Russian Federation – Finance Minister of the Russian Federation A. Kudrin to press agencies on the common board of Ministry of economic development and Ministry of Finance concerning results of 2010 and challenges for 2011

 

Russia's capital outflows should stop in H2 - FinMin

MOSCOW, April 25 (Reuters) - Russia should see a break in capital outflows in the second half of the year, Finance Minister Alexei Kudrin said on Monday.

"I think that in the second half of the year, we'll break the tendency of capital outflows," Kudrin said during an annual meeting of economy and finance ministries officials.

Although oil prices have remained for months now at more than 40 percent above the average $81 per barrel assumed in the 2011 budget, Russia saw $21.3 billion in capital outflows in the first quarter of the year [ID:nLDE72U19A].

Kudrin also said that with an oil price of $93 per barrel, the country's budget deficit in 2012 would stand at 2-2.5 percent of gross domestic product (GDP).

He also said he supports the central bank's strict policy on combating inflation.

Kudrin: Russia May Overcome Capital Outflow In 2H 2011

MOSCOW (Dow Jones)--Russia may see capital outflows reverse by the second half of 2011, Finance Minister Alexei Kudrin said Monday.

Russia saw $21.3 billion in capital outflow in the first quarter of the year, nearly two-thirds the amount of money which fled the country in all of 2010

 

Kudrin sees excise taxes in Russia up 25%–30% annually

MOSCOW, Apr 25 (PRIME-TASS) -- Excise taxes in Russia are expected to increase by 25%–30% annually, Russian Deputy Prime Minister and Finance Minister Alexei Kudrin said Monday.

Excise taxes on alcoholic beverages and tobacco products are planned to grow gradually, though they would still be lower than in Western countries over the coming years, Kudrin said.

“We are going to move slightly toward increasing the royalty on (natural) gas,” Kudrin added without providing an exact figure.

The Finance Ministry is to finalize proposals on tax increases in June, he said.

 

Kudrin: Budget deficit at 2.5% of GDP in 2012 with oil price $93/bbl

MOSCOW, Apr 25 (PRIME-TASS) -- Russia’s federal budget deficit may amount to 2.0%–2.5% of the country’s gross domestic product (GDP) in 2012 if oil prices amount to U.S. $93 per barrel, Deputy Prime Minister and Finance Minister Alexei Kudrin said Monday.

The federal budget deficit for 2010 could be adjusted to 4.0% of GDP from 4.1% announced earlier, Kudrin said.

Russia’s federal budget deficit may amount to 1.0%–1.5% of GDP in 2011, Russian Prime Minister Vladimir Putin said earlier in April. Oil prices currently amount to $105 per barrel, according to earlier reports.

 

Kudrin expects capital inflow in Russia’s economy early Jul–Dec

MOSCOW, Apr 25 (PRIME-TASS) -- Russia could receive a net private capital inflow in early July–December, Deputy Prime Minister and Finance Minister Alexei Kudrin said Monday.

One of the major conditions to record capital inflow is to keep key macroeconomic parameters stable, Kudrin said.

In January–March, net private capital outflow from Russia amounted to U.S. $21.3 billion, Chairman of the Central Bank of Russia (CBR) Sergei Ignatyev said in early April.

In 2010, capital outflow from Russia fell 32.7% on the year to U.S. $38.3 billion, the CBR said in January.

 

Kudrin says lowering inflation more important than curbing strengthening ruble.

MOSCOW, April 25 (RIA Novosti) - Fighting inflation is more important for the Russian economy than keeping the ruble from strengthening, Finance Minister Alexei Kudrin said on Monday.

Inflation has been steadily rising in Russia since wildfires and the worst drought in decades triggered short grain supplies last summer. Despite a 2010 average of 8.8 percent, Prime Minister Vladimir Putin said on Wednesday he targeted a maximum inflation rate of 7.5 percent for 2011.

"I believe lowering inflation is a more important measure as it ensures low lending rates," Kudrin at a joint meeting of officials from the finance and economic development ministries. "It is a fundamental factor for the increase in the number of loans and investments."

Kudrin also said Russia was planning to increase annual excise duties on alcohol and tobacco by 25-30 percent in the next few years to help reduce the state budget deficit.

The minister said the deficit could be as low as 2-2.5 percent of GDP in 2012 if the oil price continues to average $93 per barrel.

 

Lower inflation priority over stronger rouble -- Kudrin.

MOSCOW, April 25 (Itar-Tass) —— Lower inflation has priority over a stronger rouble, Vice Prime Minister and Finance Minister Alexei Kudrin said.

“Although we are facing a choice – inflation and strengthening [of the rouble] – I think that lower inflation is a more important indicator that leads to lower loan interest rates,” the minister said at a joint meeting of the boards of the Finance Ministry and the Ministry of Economic Development on Monday, April 25.

“This is the basic, fundamental factor for the growth of loans and investments and for better public savings,” he added.

Minimum inflation and low loan interest rates will cerate conditions for modernisation in Russia, Kudrin said earlier.

“Only this can facilitate mass modernisation, not local surgical projects,” he told Russia Today television.

“If there is a low interest rate for loans and they are issued for five, not three, years, very many enterprises can use such financial possibilities for modernisation. When interest rates for loans are high and loans are issued for three years, no loan with an interest rate exceeding 10 percent can break even in three years, except for trade or construction, in other words, a very limited number of sectors,” he said.

“This is why the main, fundamental task related to modernisation is to reduce inflation and loan interest rates. Then we will see modernisation in all key industries. New equipment is needs in all industries from oil processing and metallurgy to machine-building, aviation, space, biology and nanotechnologies,” Kudrin said.

The minister believes that the maximum success in economic modernisation has been achieved “in metallurgy, chemical industry, and pulp-and-paper industry, and is in progress in the processing industry and the sector of household appliances”.

“Active processes are underway in the pharmaceutical and automobile industries. Very many new companies have come to Russia, they are using new equipment, and what we see is basically modernisation of these industries,” he said.

“All sectors are beginning to modernise themselves. But let me say this again, it can go on a mass scale only with low loan interest rates,” Kudrin said.