Russia adopts one-year anti-crisis plan

The Russian government has approved an anti-crisis plan which stipulates no extra budget spending, Financial Minister Anton Siluanov said Tuesday.

The one-year plan will be completely financed from the existing budget, with 170 billion rubles (about 2.5 billion U.S. dollars) having been allocated for the package, the minister said.

The plan envisages that the budget will return to balance by 2017 if oil prices would grow to 70 dollars per barrel. Oil prices oscillate currently around 45-48 dollars.

Standard & Poor's downgraded late Monday Russia's credit rating from BBB- to BB+, citing "Russia's less flexible monetary policy and possible further deterioration of the country's economy."

The S&P decision will not affect the Russian capital market as the agency was unaware the austerity measures had been approved by the government, Siluanov said.

On Monday, President Vladimir Putin said the government's top priority is to secure internal social stability and the anti-crisis plan should ensure acceptable pace of inflation, controllable level of foreign debt and conservation of existing reserves.

That could be achieved only if the acceptable economic parameters are preserved, the president said.

Only microeconomic stability could attract private investors, he said, adding the federal budget will have to be optimized by drawing on the experience of 2008 financial crisis. Endit