Siluanov: the price of oil will remain around $40 per barrel


SHANGHAI, February 26. The price of oil will remain at about $40 per barrel in the long term, said Finance Minister Anton Siluanov.

“Long-term price trend, according to our estimates, will not differ from $40 a barrel: now overproduction of oil, large reserves, reducing the economy – it affects our expectations for this type of our commodity exports,” the Minister said.

Siluanov added that, given the fact that oil soon will not return to the levels two-three years ago, Russia will need to create your airbag.

The price for oil of mark Brent by the end of 2015 fell by 49.6% since the beginning of 2016 fell by 15% to approximately $33 per barrel.

About unused funds of the NWF

Total surplus funds of the NWF is more than 2 trillion rubles out of the total Fund 5,349 trillion rubles on 1 February 2016, said Anton Siluanov.

“In the current backdrop of significant spending of reserves, to talk about investing our reserves in some assets, though infrastructure is probably not necessary. Total surplus funds of the NWF is more than 2 trillion rubles,” – he said.

The Minister noted that it was agreed that up to 60% of the national wealth Fund are invested in the projects, 40% will remain to ensure balanced budgets.

“So now there is no difference, whether it’s SWF, will this Reserve Fund. So far no proposals for the national to transfer his part to the Reserve Fund or to transform – we have not considered”, – said Siluanov.

At the Gaidar forum ex-Finance Minister Alexei Kudrin has proposed to merge the Reserve Fund and national welfare Fund. He explained the need for pooled funds that against the background of challenges facing the Russian economy in the next two to three years, they must be managed as a single instrument.

On the single social payment

The Minister of Finance does not exclude that a single social payment can earn after 2017, this idea is still being worked out.

The head of the service Mikhail Mishustin said this week that the tax authorities can start the administration of insurance premiums in 2017, and this year the Federal tax service (FNS) to provide training for this transition.

“It must be comfortable for business. Transfer administration of tax service means there will be fewer administrators, it will be easier to administer. We’re talking about what you want to create a more comfortable environment from the point of view of payment of insurance premiums. So the idea of a single insurance payment really is considered, it is not quickly done, it is not today or even next year is possible”, – said Siluanov.

The Minister stressed that the Finance Ministry is considering the proposal and will discuss it within the government and with parliamentarians.”This proposal is now being considered including the rate,” he said.

Federal tax service (FTS) will assume administration of all insurance premiums. Thus on the basis of the Federal tax service will create a single centre for the administration of tax and non-tax payments, which will also include FCS and Rosalkogolregulirovanie. The question of the transfer of the Federal tax service functions of administration of insurance contributions had been discussed since 2013, but still there was no solution. Supervising tax service, the Ministry of Finance has consistently advocated the transfer of functions, and the FIU who oversees the social block of the government – against. The main argument of the Ministry of Finance in favor of transferring contributions – General simplification of the system of administration of payments and savings of budget expenditures. In turn, Deputy Prime Minister Olga Golodets insisted that such a transfer would destroy the system of insurance payments.

Earlier, President Vladimir Putin signed a decree on the transition of the Federal alcohol market regulatory service and the Federal customs service under the jurisdiction of the Ministry of Finance. At the beginning of December 2015 at state of the nation address the President set the task to create a system of unified administration customs, tax and other government payments.

Contributions to the Pension Fund (RPF) shall be paid by employers from the salary Fund. Now for salaries to 796 thousand rubles a year rate is 22% and plus 10% with higher earnings. In the social insurance Fund – 2,9% of salary up to 718 thousand and zero for incomes above that amount. For contributions to the health insurance Fund, a flat scale is 5.1% with any wages. The total rate of premium is 30% and 15.1% for income in excess of the threshold.

Earlier it was reported that the Federal tax service, which has recently transferred administration of all contributions, proposes to establish a single payment: basis for payment of contributions should be unified, the payment be made to the Federal tax service, which then distributes the funds. A uniform contribution rate must be such that no increased fiscal burden, there are plans to make it one.