Kudrin: Russia’s economy not to grow at current oil prices

MOSCOW, Mar 12 (PRIME) -- Russia’s economic growth will be around zero given the current oil prices, while the budget will lose 3 trillion rubles, the Audit Chamber’s head Alexei Kudrin said on Thursday.

“If we even today were guided by the current figures of U.S. $35 per barrel and the ruble rate of about 72 rubles per dollar – we will not receive oil and gas revenues of around 3 trillion rubles,” Kudrin said at a meeting of the Federation Council’s budget and financial markets committee.

The average oil price may amount to $40 per barrel or slightly more in 2020, he said.

Budget deficit will be slightly below 2% of gross domestic product (GDP), he said.

“Economic growth will be near zero this year, correspondingly, all other indicators in terms of people’s real incomes will be lower,” Kudrin said.

The Economic Development Ministry’s forecast for the social and economic development for 2020 is hopelessly outdated. The forecast of an average oil price of $57.7 per barrel and an average ruble rate of 63.9 rubles per dollar can no longer be figures that the budget is based on, he said.

Russia may face growth of poverty in 2020, Kudrin also said.

(71.4720 rubles – U.S. $1)

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