Page 109 - RusRPTJun24

Finance Minister Anton Siluanov said in an interview with Interfax.
The level of advances for expenses in January was minimal, he said. "In February-March, spending became more active, but in general the situation is planned out, without surges," the minister said.
The Finance Ministry does not yet see any risks to the implementation of the income plan in 2024 (just over 35 trillion at the end of the year). "The dynamics of macroeconomic parametres and the first results of budget execution as far as revenues are concerned allow us to say there are no significant risks in terms of revenues," Siluanov said.
Siluanov said that the budget law provides for an increase in revenues of RUB5.9 trillion, or 20%, while a significant part of the increase should be provided by oil and gas revenues (an increase of RUB2.7 trillion), based on the forecast dynamics of energy prices, the exchange rate and amendments to fuel and energy legislation. The application of the budget rule mitigates any potential risks in terms of oil and gas revenues, he said.
"Current expectations for the year confirm our previous forecasts," the minister said, Interfax reported.
Despite the strengthening of secondary sanctions in 2023, oil and gas revenues are expected to be within plan, Siluanov said. "We are coordinating oil production and export volumes with OPEC countries," the minister said. Exporters have established supply chains, and current oil price levels "will make it possible to fulfil plans for oil and gas income, even taking discounts into account," he said.
As bne IntelliNews reported oil sanctions have largely failed to reduce Russia’s oil and gas revenues, but there is signs of stress in the system as the discount that Russia has to offer on its Urals blend oil compared to the Brent blend benchmark has increased from around $10 per barrel to $16 now, according to research by Kyiv School of Economics (KSE). The discount on Russia’s
ESPO blend that is largely sold to China and is largely transported by pipeline has been little affected.
The law provides for an increase in non-oil and gas revenues of RUB3.2 trillion, according to MinFin, including by means of one-time large transfers (in particular, the return from social funds of transfers associated with previously granted deferments on insurance premiums, and increased export duties on a wide range of products).
The growth of this income is also associated with an increase in receipts of key tax payments, primarily VAT and other turnover taxes, which are estimated at about RUB1 trillion in total, the minister said.
109 RUSSIA Country Report June 2024 www.intellinews.com