Russia 2012 Reserve Fund Plan ‘Likely to Fail’

Falling oil prices are threatening to undermine Russia’s plans to set aside 800 billion rubles ($24 billion) for its anti-crisis mechanism this year, the country’s finance minister said on Saturday.

“We intended that this money go toward increasing the Reserve Fund, but as oil prices are diminishing, this is not likely to happen,” Anton Siluanov told reporters in St. Petersburg.

The federal budget deficit will reach 1.5 percent of GPD by the end of the yeatr, he added.

Russia will introduce “anti-crisis measures” if oil fall prices drop below $80 a barrel, Siluanov told a St. Petersburg forum on Thursday.

Siluanov had previosuly told the Financial Times Russia would earmark 500 billion rubles ($16 billion) for next year “for the direct financing of anti-crisis measures.”


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