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| Economy |
| Russia's Budget Gap Surges to Record as War Hits Finances |
| 2023-01-11 |
| [Bloomberg] Revenues hit by oil-price limits as spending on invasion grows Government expects deficit this year of 2% of GDP on $70 oil Russia’s federal budget deficit widened to a record in December as revenues plunged amid restrictions on oil exports and spending on the invasion of Ukraine grew. The fiscal gap reached a record 3.9 trillion rubles ($56 billion) last month, according to Bloomberg calculations based on preliminary government data released Tuesday. That brought the full-year shortfall to about 3.3 trillion rubles, reversing a surplus in the 11 months of the year. December's budget deficit is 3.1% of GDP in one month. Dec is when the EU oil price cap went into effect and Urals crude had crashed to an average of $50/bbl in Dec. Bloomberg says price is $37.80/bbl, below cost of production and transport. Volume off 54%. India and China volumes are also declining. Turkish volume dropped off a cliff. Natural gas volumes have similarly declined. Price of nat gas hasn't crashed as much yet, but are below prewar levels and declining. |
| Posted by:Waldemar the Limber5043 |