How dependent on oil & gas revenues is Russia's federal budget?
Vladimir Putin recently claimed that his government is only 50%
dependent on oil & gas revenues:
President Vladimir Putin said at the annual meeting of the Valdai Discussion Club.... “Fifty percent of our budget revenue comes from oil and gas sales.” _Putin talks to Valdai Discussion Group
But Putin's claim is quite low in comparison with most estimates. In fact, even official numbers place Russia's oil & gas dependency at a higher level than Putin:
Russia’s federal budget is reliant on commodities revenues - according to official data, commodities contribute around 60 percent of the federal budget; in reality, that number is closer to 75–80 percent as much of the service sector depends on money from oil and gas. _Russia's Oil Luck or Curse
So, Putin claims a 50% dependency. Official data puts the number closer to 60%. And "in reality," the number may be as high as 80%. Or perhaps even more.
When discussing the impact of the North American shale revolution on the future of Russia, Russia Today puts the figure at 80%:
Should “a shale revolution” really take place, it’ll seriously reshape the world energy market, where traditional energy sources could be replaced by cheaper shale commodities. This will hit Russia’s budget hard, as oil and gas revenues provide for about 80% of the entire Russian budget. _Natural Gas Europe _ via RT.com
Regardless of its exact level of dependency on oil & gas revenues, Russia's government is extremely vulnerable to declines in international oil prices, to international competition for oil & gas sales, and to any threats to domestic oil & gas production and transport within Russia itself.
Read more: http://oilprice.com/Energy/Crude-Oil/Putin-Plays-Down-Russias-Deadly-Dependence-on-Oil-Gas-Revenues.html
President Vladimir Putin said at the annual meeting of the Valdai Discussion Club.... “Fifty percent of our budget revenue comes from oil and gas sales.” _Putin talks to Valdai Discussion Group
But Putin's claim is quite low in comparison with most estimates. In fact, even official numbers place Russia's oil & gas dependency at a higher level than Putin:
Russia’s federal budget is reliant on commodities revenues - according to official data, commodities contribute around 60 percent of the federal budget; in reality, that number is closer to 75–80 percent as much of the service sector depends on money from oil and gas. _Russia's Oil Luck or Curse
So, Putin claims a 50% dependency. Official data puts the number closer to 60%. And "in reality," the number may be as high as 80%. Or perhaps even more.
When discussing the impact of the North American shale revolution on the future of Russia, Russia Today puts the figure at 80%:
Should “a shale revolution” really take place, it’ll seriously reshape the world energy market, where traditional energy sources could be replaced by cheaper shale commodities. This will hit Russia’s budget hard, as oil and gas revenues provide for about 80% of the entire Russian budget. _Natural Gas Europe _ via RT.com
Regardless of its exact level of dependency on oil & gas revenues, Russia's government is extremely vulnerable to declines in international oil prices, to international competition for oil & gas sales, and to any threats to domestic oil & gas production and transport within Russia itself.
Read more: http://oilprice.com/Energy/Crude-Oil/Putin-Plays-Down-Russias-Deadly-Dependence-on-Oil-Gas-Revenues.html
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