Russian Government Does Not Think Falling Oil Prices Will Prevent Fulfilment Of 2002 Budget

One need not expect negative effects on the fulfilment of the 2002 federal budget from Friday's dropping of world oil prices, said an informed source in the Russian government. Crude prices fell on Friday in the world's exchanges to a record low for the past few years - below 18 dollars per barrel. But, the source emphasised, it would be incorrect to speak of any sharp fall in oil prices, because it approached its average figure for the past 10 years. Proceeding from the fact that revenues of next year's federal budget were projected according to the so-called "conservative scenario," one can safely say that all spending in the 2002 budget will be 100 per cent financed. As for additional revenue, the emerging situation is proving the correctness of the government which is insisting that expenses related to it should be financed only as money comes into the federal budget.

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