Deutsche Bank sees National Wealth Fund lasting for 2 years

MOSCOW, Apr 24 (PRIME) -- Liquid assets of Russia’s National Wealth Fund will last for two years at a Urals oil price of U.S. $15 per barrel, Deutsche Bank said in a research note on Friday.

The liquid part of the fund amounted to $150 billion in March, but it may fall to $120 billion following a 2.1 trillion ruble purchase of a controlling stake in Sberbank by the Finance Ministry from the central bank. If the Urals price stays at $15, the sum would be enough to cover deficit of oil and gas revenue for slightly more than two years, but with a price of $30 it would last for six years, Deutsche Bank said.

Russia’s fiscal buffers will suffice to weather a temporary oil price shock, but the fiscal space will be very limited due to the consequences of the COVID-19 pandemic, especially if oil prices recover slowly, the bank said.

Research agency Argus said earlier that the price of Russia’s Urals oil fell by more than $5 per barrel to $11.59 per barrel with delivery to Northwestern Europe and to $12.09 per barrel with delivery to Southern Europe.

End %%md/jst%%