Sections
Log in
Top News
U.S. News World News Featured Voices
Odd News
Entertainment
Movies Music TV
Sports
Soccer NFL NBA MLB NHL Golf Horse Racing Tennis Col. Football Col. Basketball
Photos
News Entertainment Sports Features Archives
More...
Defense Featured Science Health Archive Almanac
About Feedback
About Feedback
Search
Trending
9/11 fund
Payless
Theodore McCarrick
Jussie Smollett
Illinois shooting
Iran attack
Laurie Hernandez
'Alexa & Katie'
Nigeria election
Colin Kaepernick
Stephen Curry
YNW Melly
Energy News
Oct. 9, 2015 / 7:29 AM

Russia running short on reserve funds

Russian economy faltering under the pressure of low crude oil prices and sanctions.

By
Daniel J. Graeber
Russian coffers facing mid-term shortage because of strains of lower crude oil prices and Western economic sanctions. Photo by DyMax/Shutterstock

MOSCOW, Oct. 9 (UPI) -- Stumbling under the strain of low crude oil prices, the Russian economy will run out of reserve funds as early as 2017, the deputy finance minister said.

Russian Deputy Finance Minister Tatiana Nesterenko said private sector investments are all-but out of the question when access to foreign markets is limited.

"Reserve funds are depleting. We believe reserve funds may end at such rates of their spending," she said. "We will use up resources received when oil prices were high by 2017-18."

The Russian military intervention in the Syrian civil war on the side of Syrian President Bashar al-Assad put positive pressure on crude oil prices. White House Press Secretary Josh Earnest said last week Russia was responding from a position of weakness brought on by the dual economic strains of lower crude oil prices and tighter sanctions.

RELATED Major reserve discovery confirmed in Golan Heights

Earnest said in 2013 the Russian economy was about 12 percent the size of the United States' and it should end the year about half that size. The International Monetary Fund expects Russia to linger in recession, with the economy on pace to contract by up to 4 percent.

The Russian economy teetered on the brink of recession when entering fiscal year 2015. In September, Russian President Vladimir Putin called for financial stability and pushed for efforts "to considerably decrease the federal budget's dependence on oil prices."

The Russian economy relies heavily on oil for revenue. Low crude oil prices, coupled with the strain of economic sanctions, are burdens on the nation's overall growth trajectory.

RELATED Statoil: 250 barrels of oil spilled in North Sea

The Bank of Russia said it would keep its key interest rate at 11 percent annually because of higher inflationary risks and "persistent risks of considerable economy cooling."

RELATED New York praised for climate leadership

RELATED Lundin unloads Indonesian assets
  • Topics
  • Bashar al-Assad
Follow us on Facebook, Twitter and Instagram for more UPI news and photos.

Trending Stories

Miranda Lambert marries Brendan McLoughlin
Born to be Blue: Baby delivered aboard JetBlue flight
Anthony Weiner released from prison to federal re-entry program
Lorraine Bracco to star in BBC comedy 'Jerk'
Teen who joined IS in Syria gives birth, seeks return to Britain

Photo Gallery

 
Balloons take flight at Al-Ula Balloon Festival in Saudi Arabia

Latest News

UPI Almanac for Monday, Feb. 18, 2019
Famous birthdays for Feb. 18: Dr. Dre, Toni Morrison
On This Day: Dozens die in Kiev, Ukraine, protests
Fashion icon Lee Radziwill dies at 85
Stephen Curry ends All-Star Game with reverse slam off bounce alley-oop
 
Back to Article
/
Back to top
About UPI Contact Feedback Advertisements Submit News Tips
Copyright © 2019 United Press International, Inc. All Rights Reserved.
Terms of UsePrivacy Policy