The cut-off price for replenishment of the National Wealth Fund may be reduced to $50 per barrel

The oil cutoff price for replenishing the National Welfare Fund may be lowered to $50 per barrel Urals, according to those interviewed by Izvestia.

Oil has gone into the shadows: Brent is below $60, Urals - $50

How falling commodity prices affect budget plans

It was necessary to lower the bar because global energy quotations have fallen by a quarter due to trade wars since the beginning of the year, and on May 5, Brent hit another low, dropping to $59 per barrel. Russian grade Urals traded below $54 per barrel, follows from the data of the site ProFinance.

In late April, the head of the Ministry of Finance Anton Siluanov said that the oil cut-off price of $60 per barrel, which is currently in effect, "does not meet the demands of the time." However, he did not name the actual figure.

Experts warn that if the budget rule is not changed, there is a risk of too rapid depletion of the National Wealth Fund and overstrengthening of the ruble. According to the Ministry of Finance on April 1, the fund's liquid assets amounted to Br3.3 trillion. At the same time, only in 2025, according to the updated forecast of the department, the federal budget deficit will be at the level of Br3.8 trillion.

Read more in the exclusive material "Izvestia":

Don't stand on the threshold: the cut-off price for replenishing the National Oil and Gas Fund may be reduced to $50 per barrel