10.02.2022, 17:50
Western Analysts Predicted an Additional $65 Billion in Russia's Income from Expensive Oil
Source: OREANDA-NEWS
OREANDA-NEWS. The Russian budget could receive more than $65 billion in additional revenue in 2022 thanks to rising oil prices, which will help to cope with possible sanctions from the US and Europe. It is reported by Bloomberg with reference to analysts on Thursday, February 10.
In order for the budget to be replenished by the specified amount, oil should cost around $90 per barrel. If the price rises to $100 per barrel, Russia's revenues will increase from $73 billion to $80 billion, analysts say.
In ruble terms, the windfall could be even bigger as the Russian national currency weakened against the US dollar amid fears of new sanctions over the crisis in Ukraine, the agency said. Also, the high cost of natural gas due to ongoing tensions in Europe, Russia's main export market, could further increase the "windfall", economists say.
Bloomberg Economics Russia economist Scott Johnson says Russia's windfall looks "staggeringly large" this year. This, he said, boosts Russia's fiscal buffers "at the right time for the Kremlin," providing a buffer against a crisis due to possible sanctions.
According to forecasts for this year, revenues to the Russian budget from the oil and gas sector will amount to 9.54 trillion rubles, in 2023 they will decrease to 9.19 trillion rubles, and in 2024 they will continue to fall to 8.56 trillion rubles, writes Gazeta.ru ".
According to the Central Bank, as of February 4, Russia's international reserves amount to $634.1 billion. The volume of the NWF is $182.59 billion, or 11.7% of the country's GDP.
In order for the budget to be replenished by the specified amount, oil should cost around $90 per barrel. If the price rises to $100 per barrel, Russia's revenues will increase from $73 billion to $80 billion, analysts say.
In ruble terms, the windfall could be even bigger as the Russian national currency weakened against the US dollar amid fears of new sanctions over the crisis in Ukraine, the agency said. Also, the high cost of natural gas due to ongoing tensions in Europe, Russia's main export market, could further increase the "windfall", economists say.
Bloomberg Economics Russia economist Scott Johnson says Russia's windfall looks "staggeringly large" this year. This, he said, boosts Russia's fiscal buffers "at the right time for the Kremlin," providing a buffer against a crisis due to possible sanctions.
According to forecasts for this year, revenues to the Russian budget from the oil and gas sector will amount to 9.54 trillion rubles, in 2023 they will decrease to 9.19 trillion rubles, and in 2024 they will continue to fall to 8.56 trillion rubles, writes Gazeta.ru ".
According to the Central Bank, as of February 4, Russia's international reserves amount to $634.1 billion. The volume of the NWF is $182.59 billion, or 11.7% of the country's GDP.
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