Russia faces $39 B budget gap in 2020 from lower oil, gas revenues

Russia’s budget revenues from oil and gas sales are set to be 3 trillion roubles ($39 billion) lower than previously expected this year due to the slump in crude prices, Finance Minister Anton Siluanov said.

Siluanov’s had initially estimated a 2 trillion rouble shortfall, with a deficit that could reach 0.9% of gross domestic product (GDP).

Oil prices fell for a third session on Wednesday to be down about 17% so far this week as the outlook for fuel demand darkened because of travel and lockdowns in place to curb the spread of the coronavirus epidemic.

Prices for Brent crude, a global benchmark for Russia’s main export, were down 1.25% at $28.41 a barrel by 0832 GMT.

The Fund “has enough to cover for the shortfalls in income from lower oil prices for more than five years,” the bank said in a note.

The ministry has said that the country could weather oil prices of $25 to 30$ per barrel for between six and 10 years.

The Kremlin said last week that Russia’s economy had sufficient international reserves and was sufficiently robust to weather any temporary market instability.

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