Ministry of Finance of the Russian Federation
Ministry of Finance of the Russian Federation
29.06.2011

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

 

Reserve Fund to grow by 600 bln-700 bln rubles this year with oil at $105 - Kudrin

GORKI. June 29 (Interfax) - Russia's Reserve Fund will not be depleted this year but instead will grow by 600 billion-700 billion rubles, Deputy Prime Minister and Finance Minister Alexei Kudrin said.

"This year we forecast $105 per barrel as the average price for the year. We have seen the price dip a bit just now, and it may decline a little more by the end of the year, due in part to the effect of a release of strategic oil reserves. Therefore we expect some decline in oil prices by the end of the year," Kudrin said at a briefing following the president's budget address.

Oil prices might fall below $100 per barrel by the end of the year.

"That is in line with our original forecast. Therefore the forecast for the average price of oil contained in next year's budget is 93," Kudrin said.

"This year we expect an average price of $105. We do not expect the Reserve Fund to be depleted but that it will increase in size, by 600 billion-700 billion rubles according to various estimates. But given that we assume a lower price next year, the budget deficit will be a little less than 3% [of GDP], which will make it possible to save a small amount, 100 billion-200 billion rubles, if we stick with that forecast," he said.