Report: Russia can rebuild reserves at $55 oil under new budget rule

MOSCOW, Jan 19 (PRIME) -- Russia could start building up its depleted fiscal reserves while keeping the ruble from firming if prices for Urals crude oil average U.S. $55 a barrel in 2017, according to documents of the Finance Ministry showed on Thursday, as reported by Reuters.

With Urals oil prices between $40 and $55 a barrel, the Finance Ministry will seek to limit spending from its fiscal reserves, according to the documents on a new budget rule being considered by the ministry.

Russia is looking for ways to avoid depletion of its thin fiscal buffers, which have been used to plug holes in the budget following a collapse in global prices for oil, a key export.

The price for Urals, a Russian export blend, was around $52 on Thursday, above the $40 used for this year's budget plans.

Under the new budget rule being considered, this year's budget deficit would be 1.5% of gross domestic product (GDP) if Urals averages $50 a barrel, while the ruble is seen at 66.3 per U.S. dollar at that Urals price.

If Urals reaches $70, the budget rule would keep the ruble at around 61 versus the dollar compared with Thursday's level of 59.6.

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