Close Menu
    Facebook X (Twitter) Instagram
    Facebook X (Twitter) Instagram
    SweetCrudeReportsSweetCrudeReports
    Subscribe
    • Home
    • Oil
    • Gas
    • Power
    • Solid Minerals
    • Labour
    • Financing
    • Freight
    • Community Development
    • E-Editions
    SweetCrudeReportsSweetCrudeReports
    Home » Russian 2023 budget deficit to widen as price caps take effect – Scope

    Russian 2023 budget deficit to widen as price caps take effect – Scope

    February 26, 2023
    Share
    Facebook Twitter LinkedIn WhatsApp
    *Russian President Vladimir Putin.

    Berlin — Lower revenues from oil and gas exports will significantly widen Russia’s budget shortfall this year, according to an analysis from the European ratings agency Scope obtained by Reuters on Friday.

    Scope expects the deficit to rise to 3.5% of gross domestic product (GDP), significantly wider than the government’s forecast of 2% of GDP, according to the analysis. In 2022, the official shortfall came in at 2.3%.

    “Sanctions and the war are constraining Russia’s fiscal flexibility … due to lower energy export revenues, higher war-related spending and a steady decline in GDP,” it said.

    “For now, Russia can finance its deficit relatively easily by drawing down the National Wealth Fund, set to amount to only 3.7% of GDP by end-2024 from 10.4% of GDP at end-2021.”

    Another way to plug the deficit is to issue domestic bonds to state-owned banks, backed by liquidity provided by the Bank of Russia.

    According to Scope, the high level of defence spending will harm the Russian economy in the long term, as it comes at the expense of investments in infrastructure, digitalisation, housing and environmental protection.

    Finance Minister Anton Siluanov said in an interview broadcast a week ago that Russia was sticking to its forecast of a deficit of 2% of GDP for the year, although analysts have flagged that it may end up being wider if current spending and revenue dynamics continue.

    Western countries want caps on the price of Russian oil to reduce income for the Kremlin’s war chest for its invasion of Ukraine, which entered its second year on Friday.

    Reporting by Rene Wagner; Writing by Friederike Heine; Editing by Rachel More and Kevin Liffey – Reuters

    Follow us on twitter

    Related News

    Can the African Energy Bank transform the continent’s refining and downstream future?

    FG strengthens partnership with Impact Investors to drive Nigeria’s economic transformation

    Nigeria’s export earnings hit N20.6trn in Q1 2025, outpacing imports

    E-book
    Resilience Exhibition

    Latest News

    FG reiterates commitment to port automation

    June 14, 2025

    Seplat Energy earns CIPS Procurement Excellence Standard Certificate 

    June 14, 2025

    Meta signs deal for advanced geothermal power in New Mexico

    June 14, 2025

    IEA says it stands ready to tap emergency oil stocks, OPEC sees no need

    June 14, 2025

    China solar industry to address overcapacity challenge but turnaround far off, experts say

    June 14, 2025
    Demo
    Facebook X (Twitter) Instagram
    • Opec Daily Basket
    • Oil
    • Power
    • Gas
    • Freight
    • Financing
    • Labour
    • Technology
    • Solid Mineral
    • Conferences/Seminars
    • Community Development
    • Nigerian Content Initiative
    • Niger-Delta Question
    • Insurance
    • Other News
    • Focus
    • Feedback
    • Hanging Out With Markson

    Subscribe for Updates

    Get the latest energy news from Sweetcrudereports.

    Please wait...
    Please enter all required fields Click to hide
    Correct invalid entries Click to hide
    © 2025 Sweetcrudereports.
    • About Us
    • Advertise with us
    • Privacy Policy

    Type above and press Enter to search. Press Esc to cancel.