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Russia May Cut Crude Estimate in 2016 Budget as Prices Plunge

  • Finance Ministry sees oil at $40 a barrel next year for budget
  • 2016 budget currently based on average price of $50 a barrel

Russia may cut its oil-price estimate for the 2016 budget next year, possibly following other crude-exporting nations as the commodity, which makes up about 40 percent of the country’s budget revenue, nears 11-year lows.

“We should be ready for any oil price developments -- our estimates for next year are for about $40 a barrel for budget calculations,” Finance Minister Anton Siluanov said Wednesday in an interview with state television Rossiya 24. His ministry will prepare proposals to review fiscal plans at the end of the first quarter “if the situation doesn’t change,” he said. The 2016 budget, signed by President Vladimir Putin earlier this month, is based on an average oil price of $50 a barrel.