Gref: the Reserve Fund in 2016, will use up to one half if the average oil price of $40

Gref: the Reserve Fund in 2016, will use up to one half if the average oil price of $40

MOSCOW, February 16. The government will use up the Reserve Fund up to one half if the average annual oil price of $40 per barrel. This assessment resulted on a press-conferences the head of Sberbank German Gref.

“Today it is very difficult to predict the use of the contingency Fund. But, according to our preliminary estimates, if the oil price will hold around 40 dollars per barrel, a reduction of the budget, this year about half of the reserve Fund will be spent”, – said Gref.

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Siluanov: the Ministry of Finance can start spending reserves, while maintaining oil prices at $30

The size of the contingency Fund as at 1 February 2015 $ 3,737 trillion rubles, while a year earlier it was equal to 5,865 trillion rubles. In 2015, the direct financing of the budget deficit from the Reserve Fund has been spent 2.6 trillion rubles.

Earlier, Finance Minister Anton Siluanov expressed the view that the Reserve Fund and reinvestirovanie means the national welfare Fund can be spent in 2016, if we abandon the fiscal optimization. This Siluanov said that the Russian budget is balanced at an oil price of 82 dollars per barrel, so we have to change the budget strategy. In addition, the Minister on January 13 said that if the current oil prices and in the absence of the government’s response, the deficit may grow twice. At that time, the price of Brent crude oil was at its minimum – below 28 dollars per barrel. According to the head of the Ministry of Finance, reduction of budget expenditures by 10%, with the exception of the so-called protected items, will give you the opportunity to save some 512 billion. The ministries and agencies receiving appropriations in 2016, will determine the priorities for these allocations and will make decisions about choosing a major most effective spending and trim inefficient spending.

Earlier this month, Siluanov said that the Finance Ministry maintains the goal of a 3% budget deficit with oil at $40 per barrel in 2016.

About oil

Gref said that save, on average, in 2016 oil production at the level of January of the current year can influence the price only upon compliance with the agreements and market confidence to this.

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Russia and 3 countries in OPEC are willing to save in 2016 oil production at the January level

“This (statement 4 countries about the readiness of the freezing of oil production) was done for only one purpose, to affect the growth of prices. After the announcement of this decision, the market reacted by 1.5% (growth). The question will be what mechanism will control this decision and whether the market confidence that these agreements will be respected, whether they are hard. That’s the main thing”, – said Gref.

As previously reported, Russia, Saudi Arabia, Qatar and Venezuela are ready to save, on average, in 2016 oil production at the level of January of the current year, if other countries – oil producers will join this initiative.

According to the February report of OPEC production the organization in January increased by 131 thousand barrels/day until 32,33 million barrels/day. Oil production in Russia in January, according to the CDU TEK, amounted to $ 10,878 million barrels/day.

According to the Minister of energy of Qatar Mohammed bin Saleh al-Gardens, low oil prices were a positive for the world. In addition, Qatar will monitor the agreement on freezing of oil production.

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From high to collapse: the dynamics of oil prices since 2000