Economics
Putin’s Budget Has Lowest Break-Even Oil Price in Over a Decade
- Budget balances at $49/bbl this year, even lower in first half
- Sanctions fears, global uncertainly fuel Kremlin caution
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Oil prices may be recovering, but Russian President Vladimir Putin isn’t taking any chances, running a budget that balances at the lowest crude price in more than a decade.
“Putin’s sticking to a tight financial policy, worried about new sanctions and a repeat of 2009, when GDP contracted by nearly 8%,” said Vladimir Miklashevsky, a strategist at Danske Bank A/S in Helsinki.