Russian President Vladimir Putin announced that oil would be priced at $50 per barrel in the country’s next three-year budget. The federal budget deficit is also expected to stand at approximately 2 percent.
Putin described this oil price assumption as extremely cautious and reliable. He said Russia’s three-year budget draft was being prepared according to the planned timetable.
Security and social commitments in the 2027 budget
The Russian government is completing work on the socioeconomic development forecast that will form the basis of the budget. Putin listed fulfilling social commitments, ensuring security and maintaining defense capacity among the priorities for the 2027 budget.
Russia expects oil and natural gas revenues to increase in the coming months. Putin said this increase in revenue would allow funds to be transferred to the National Wealth Fund.
Economic indicators
Putin said Russia’s economic priorities must be analyzed continuously and stated that economic activity was generally progressing in line with expectations.
Putin said the efforts of the Central Bank and the government to reduce inflation had produced results, and noted that Russian companies were operating steadily. He said this stability was also reflected in the labor market and announced that unemployment remained at a historic low.
Rising household incomes were reflected in consumer demand in Russia. Putin also signed a decree providing for the extension until 2028 of the embargo on agricultural products from Western countries.
The food embargo in Russia, in place since 2014, remains in effect as part of measures taken in response to unfriendly actions by the West.