Cost of Russian Oil has fallen below the budget level
2023.01.13 10:38
Cost of Russian Oil has fallen below the budget level
By Kristina Sobol
Budrigannews.com – Reuters calculations showed on Friday that the price of Russia’s flagship Urals oil in roubles has fallen to its lowest level since November 2020. This price is about a third lower than the government had anticipated in its 2023 budget.
The government ran a budget deficit of approximately 48.7 billion rubles, or 2.3 percent of GDP, in the previous year.
In January, the average price of Urals has decreased to 3,233 roubles per barrel. That is 32.5 percent lower than the price used to compile Russia’s 2023 budget, which was $70.1 per barrel, or 4,788 roubles per barrel.
The mineral extraction tax and Russia’s oil export duty are both determined by the oil price in roubles, which is crucial to the budget.
After falling in December, the rouble has strengthened this month and received support earlier this week when the central bank announced that it would begin selling foreign currency on forex markets.
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