Russia to Borrow $7 Bln on Foreign Markets Next Year – MinFin

SOCHI, December 5 (RIA Novosti) – The Russian government will borrow $7 billion on foreign markets with US dollar-denominated Eurobonds next year, Finance Minister Anton Siluanov said on Wednesday after Russia approved the 2013 federal budget setting the budget deficit at 0.8 percent of GDP.

“We can do this [Eurobond placement] in tranches, but recent experience shows that we should make the float as soon as we see a window of good opportunity for borrowing and offer the Eurobond for the entire sum at once,” he said, adding that there would be no increase in the total volume of external borrowings.

In 2010, Russia placed Eurobonds worth $5.5 billion for the first time after a 12-year gap. The Eurobond issue was heavily oversubscribed.

In 2011, Russia did not borrow on the external markets as the state’s coffers were full from sales of oil, the country’s key export. The 2012 federal budget projects $7 billion in external borrowings.

Russian President Vladimir Putin on Wednesday signed the federal budget for 2013 and the planning period of 2014-2015.

“The federal budget for 2013 and the planning period of 2014 and 2015 was compiled taking into account new budget rules, related to the use of oil and gas revenues, which are to be introduced from January 1, 2013,” the Kremlin press office said.

Russia’s 2013 budget sets revenues of 12.8 trillion rubles ($414 billion) and expenditures of 13.3 trillion rubles ($430 billion), with a budget deficit of 521.4 billion rubles ($16 billion).

Russia’s new fiscal rules aim to make the budget less dependent on volatile oil prices, reducing the economic risk resulting from a sudden drop in oil prices. Russia’s expenditures will be based on average oil prices for the past five years instead of projected oil prices.


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