The ceiling on oil prices from Russia caused a record budget deficit in the Russian Federation in December 2022 that could be met by yuan reserve reserves. About informs Bloomberg.
The ceiling price in Russia’s crude oil exports caused a decrease in Russia’s revenues. Combined with increased spending following the launch of a special operation in Ukraine, this led to a record deficit in December, when Russian Ural oil was trading at $50 a barrel. At the same time, the country’s spending will still not be reduced, as the budget deficit can be covered by reserves of $45 billion yuan.
The publication pointed out that if the oil price stays at the same level, Russia will have the opportunity to avoid a budget deficit in the next few years. At the same time, yuan-denominated reserves could expire as early as this year if the price of oil falls below $35 a barrel.
Market experts agree that Russia most likely does not want to lose its yuan reserves, so currency selling may slow. This will give it time to adapt to lower fuel revenues.
January 11, on the Ministry of Finance website reportedUntil the end of January 2023, the federal budget of Russia will receive less than 54.5 billion rubles from export sales in the oil and gas sector. At the same time, in the first month of this year, there is a possibility that the risks of reduction in the actual volumes of gas exports compared to the estimated values ​​will continue.
Source: Gazeta
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