Russia could end up borrowing $ 6.8 billion (500 billion Russian rubles) less than expected this year, with rising oil prices helping its main oil revenues to rise, Bloomberg reported on Wednesday, citing two knowledgeable officials. plans.
The rebound in oil prices, which have risen by around 30% this year, also coincides with the Russian economy’s exit from the pandemic crisis.
Last year, the Russian economy suffered from the consequences of the fall in oil prices that it helped create with the temporary break with its partner OPEC + Saudi Arabia in March 2020. The Russian ruble fell. collapsed and Russia’s oil revenues declined due to falling oil prices. during the pandemic.
In March 2020, Russian Finance Minister Anton Siluanov warned that oil and gas revenues would be $ 40 billion (3 trillion rubles) lower than forecast due to falling oil prices. Russia’s economy is not doing as well as it would have hoped, the then finance minister admitted, saying the price of oil factor alone was to cut the country’s budget revenue by nearly $ 40 billion. compared to previous estimates.
Falling oil prices, along with the global recession caused by coronaviruses, will cause the Russian economy to contract 6% in 2020, or more in 11 years, the World Bank said in its economic report on Russia. in August 2020.
Russia was also considering adopting some sort of national oil hedging program, similar to Mexico’s oil hedging, to protect government revenues from future drops in oil prices.
This year, rising oil prices are pushing up Russia’s oil revenues, its top export earnings, and the government is discussing debt reduction for the year, Bloomberg sources say.
Authorities plan to cut borrowing to US $ 43 billion (3.2 trillion rubles) from US $ 50 billion (3.7 trillion rubles), according to the sources, one of whom even said the reduction borrowing in 2021 could double to 13.5 billion US dollars (1 trillion rubles).
By Tsvetana Paraskova for OilUSD
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