Russia's 2018 federal budget may move into surplus: finance minister

MOSCOW, Jan. 17 (Xinhua) -- Russia's federal budget is on track to return to surplus this year due to higher than expected oil prices, Russian Finance Minister Anton Siluanov said Wednesday.

"This year, according to plan, we are to have a 1.3 percent deficit to GDP, but if things continue as they are today, we will have a surplus," Siluanov was quoted as saying at an international economic forum in Moscow in a report of RIA Novosti news agency.

He added that the deficit of the federal budget for 2017 shrank to 1.5 percent of gross domestic product (GDP) against the initially expected 2.2-2.5 percent.

Siluanov said his ministry intends to keep the Russian ruble stable this year.

High oil prices have made the ruble stronger, but the finance ministry intended to continue purchasing foreign currency in order to smooth the rate.

According to the latest version of the budget rule, the cut-off price for the benchmark Russian Urals oil is set at 40 U.S. dollars per barrel in 2017 prices and is subject to an annual indexation of 2 percent, starting from 2018. The purchased currency then goes to the state reserve.

Russia last had a federal budget surplus in 2011, which accounted for up to 0.8 percent of GDP on high oil prices.

The latest budget amendments signed into law by Russian President Vladimir Putin in November put the revenues at 14.72 trillion rubles (260 billion dollars), expenditures at 16.73 trillion rubles (295 billion dollars), and the deficit at 2.0 trillion rubles (35.22 billion dollars). Enditem