Ministry of Finance of the Russian Federation
Ministry of Finance of the Russian Federation
15.06.2011

Statements of Deputy Head of the Government of the Russian Federation – Finance Minister of the Russian Federation A. Kudrin

 

Kudrin sees fedl budget deficit at over 2.5% of GDP in mid-term

MOSCOW, Jun 15 (PRIME) -- Russia’s federal budget deficit is projected to be over 2.5% of the gross domestic product (GDP) in the mid-term, Deputy Prime Minister and Finance Minister Alexei Kudrin said Wednesday.

Kudrin said this level was critical, as the government would have to annually borrow around 2 trillion rubles on the market with such a deficit. He also said it was necessary to eliminate a federal budget deficit by 2015.

The Russian government’s debt is expected to reach 16%–17% of the GDP in 2013 if the federal budget deficit remains at 2%–3% of GDP, Kudrin also said.

Speaking about Russia’s GDP, Kudrin said that despite growing in nominal terms, the GDP significantly fell in real terms in recent years and hasn’t yet reached the pre-crisis level. The level of 2008 could be reached in 2011, he said.

Industries other than the oil and gas sector should annually grow over 10% to ensure Russia’s annual economic growth of 5%–6%, Kudrin also said. At present, revenues of the oil and gas sector account for 20% of Russia’s economic growth, he said, adding that the country’s oil output was expected to remain almost flat in the coming years, rising only 1%–2%. It means that growth of other sectors should be higher, he said.

 

Kudrin: Ruble May Hit RUB26-RUB24 Vs Dollar If Russia Spends Oil Cash

MOSCOW -(Dow Jones)- The ruble may move to RUB26-RUB24 against the dollar if Russia spends its oil windfall income, Finance Minister Alexei Kudrin said Wednesday.

That would put the currency between 7% and 16% above today's level of 27.91.

"The upward pressure on the ruble will be very strong if oil prices remain above $115 per barrel and the extra income is spent," Kudrin told journalists Wednesday.

Kudrin said that Russia should develop a law on how much of the oil windfall may be directed to the budget and how much stored away into the country's sovereign funds.

"That way, investors will know that the ruble will not strengthen" he said.

 

Kudrin Sees Russia's Oil Output Flat In 10 Years

MOSCOW (Dow Jones)--Russia, the world's largest energy producer, will base its budgets for the next three years on an average oil price of $90 to $100 per barrel, Finance Minister Alexei Kudrin said Wednesday.

Kudrin added that current oil prices are "unsustainable" and said Russia's oil output will remain flat for the next 10 years.