Russia Could Rebuild Fiscal Reserves with $55 Oil
Russia could start building up its depleted fiscal reserves while keeping the rouble from firming if prices for Urals crude oil average $55 a barrel this year, documents seen by Reuters showed on Thursday.
With Urals oil prices between $40 and $55 a barrel, the finance ministry will seek to limit spending from its fiscal reserves, according to the documents on a new budget rule being considered by the finance ministry.
Russia is looking for ways to avoid depletion of its thin fiscal buffers, which have been used to plug holes in the budget following a collapse in global prices for oil, a key export.
The price for Urals, a Russian export blend, was around $52 on Thursday, above the $40 used for this year's budget plans.
Under the new budget rule being considered, this year's budget deficit would be 1.5 percent of gross domestic product if Urals averages $50 a barrel, while the rouble is seen at 66.3 per dollar at that Urals price.
If Urals reaches $70, the budget rule would keep the rouble at around 61 versus the dollar compared with Thursday's level of 59.6.
By Darya Korsunskaya
