Russia could get an additional $65 billion for its state coffers this year if higher oil prices remain resilient, Bloomberg reported this week, citing estimates made by economists.
For the windfall to realize, prices need to remain around $90 per barrel of Brent for the rest of the year, according to the estimates. Yet with many forecasters expecting even higher prices later in the year, topping $100 and more, Russia may gain a lot more, up to $73 billion in additional oil revenues.
With gas prices high, too, Russian fossil fuel revenues are set to go even higher in total.
“Russia’s fiscal position is so super-stable that even with more modest oil prices, it’s hard to compromise it in the current situation,” Bloomberg quoted Renaissance Capital analyst Donets as saying.
“This year’s energy windfall looks set to be staggeringly large. That’s swelling Russia’s fiscal reserves at just the right time for the Kremlin, providing a bigger buffer against crisis in the event of sanctions. Geopolitics aside, it also means more flexibility to boost spending and invest in the economy,” Bloomberg economist Scott Johnson told the news agency.
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