Russian finance minister warns about budget

(MENAFN) Russian Finance Minister Anton Siluanov has warned that the country may face budgetary difficulties due to falling oil revenues and global economic instability. During a recent meeting, Siluanov advocated for boosting fiscal reserves and revising the current budget rule, which diverts oil revenues above $60 per barrel to the National Wealth Fund (NWF). He argued that the fund should be capable of supporting three years of uninterrupted government expenditures.

Siluanov emphasized that the global economic situation requires careful attention to the resilience of public finances, particularly as trade wars continue to reduce export opportunities, including for Russia. He stated that the country would need to adjust spending plans to align with these "new realities" and focus on achieving more efficient use of budget resources.

Oil and gas revenues now contribute only a quarter of Russia’s federal budget, reflecting a significant decrease in dependency on the sector. According to preliminary estimates from the Finance Ministry, oil and gas revenues in the first quarter of 2025 totaled 2.64 trillion rubles ($28.4 billion), marking a 9.8% decline from the same period in 2024.

Prime Minister Mikhail Mishustin also addressed the need for economic stability, urging the ministry to be ready to respond to market fluctuations and prevent budget risks. With oil prices continuing to fall, driven by US trade tariffs and OPEC+’s decision to increase production, Russia’s oil price forecast for 2025 has been revised downward, with the Finance Ministry now expecting an average price of $60 per barrel, down from the previous $70 estimate. The Economic Development Ministry has even lowered its forecast to $56 per barrel.

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