Putin works to counter impact of low oil prices

MOSCOW, Sept. 23 (UPI) -- A Russian economy struggling under the dual pressures from sanctions and low crude oil prices needs to work to overcome recession, the Russian president said.

"In the present environment, it is particularly important to provide a set of measures to overcome the economic recession and maintain the role of the federal budget as one of the leading development tools," President Vladimir Putin said in a statement.

The Russian economy teetered on the brink of recession when entering fiscal year 2015. In early September, the Bank of Russia said it was keeping the key rate at 11 percent annually because of higher inflationary risks and "persistent risks of considerable economy cooling."

The International Monetary Fund in January warned the low price of oil is "clearly bad news" for economies like Russia's that depend heavily on export revenue. The adverse effect for Russia, the fund warned, would likely be "very large."

Putin said the federal budget deficit for next year should be no greater than 3 percent of gross domestic product, a benchmark he said was one of the most important to consider during the planning process.

"It is imperative to ensure the balance and stability of public finance, and to considerably decrease the federal budget's dependence on oil prices," he said.

Western sanctions add another layer of pressure on a Russian economy dependent on revenue generated from the oil and natural gas sector. The U.S. Treasury Department's Office of Foreign Assets Control in August targeted Ukrainian and Russian business leaders, including Russia gas trader Gennady Timchenko and Boris Rotenberg, a close associate of the Russian president.

Putin said budget planners need to work to limitations that hinder business activity.

"We know that the economic situation is complicated, but it is not critical," he added.