‘No tragedy’ for Russian budget due to current oil prices
Speaking at a press briefing following talks with Ukrainian
President Petro Poroshenko in Milan on Friday, Putin said the
current price of US$80 per barrel is not profitable for producers
and should rise in the near future.
The Russian state budget is drafted based on the price of $96 per barrel, he added.
Putin also reassured that that there will be no sharp rise in Russia’s budget deficit. He did, however, state that some corrections to the budget may be made, but that welfare spending won't be affected.
“Maybe we’ll have to correct something in the budget. Maybe cut down some items but it surely won’t be connected with cutting social expenditures,” he said. According to the president, Russia is able to make those corrections without any significant losses taking place.