Russia is running a budget that breaks even at the lowest crude oil price in over a decade, Bloomberg reported Thursday.
This year’s budget balances at a price of $49.20 for Urals crude, putting it close to the bottom of the rankings of major oil producers according to that measure, Bloomberg reported.
“Putin’s sticking to a tight fiscal policy, worried about new sanctions and a repeat of 2009, when GDP contracted by nearly 8%,” Danske Bank strategist Vladimir Miklashevsky told Bloomberg.
Russia recorded a slightly higher than expected, but still weak, GDP growth of 0.9% in the second quarter of this year and the country’s year-on-year industrial output growth was a disappointing 2.8% in June.
“There’s no denying Russia has prioritized long-run fiscal stability over stimulating the economy. But there are signs the authorities are preparing to loosen their stance to boost growth. Tapping into oil savings seemed off-limits just a few months ago, and now it’s a strong possibility,” economist Scott Johnson told Bloomberg.
A Message from The Moscow Times:
Dear readers,
We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."
These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.
We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.
Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.
By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.
Remind me later.
