The Russian government had raised the level above which revenues from oil exports
The Russian government said on April 1 that it had raised the level above which revenues from oil exports will flow into a Stabilization Fund.
The cut-off price for Urals oil will be $27 a barrel beginning from 2006, up $^ from $20 it is now. Price of Urals oil is believed to be $34 per barrel next year.
The cut-off price was the sticking point of the budget strategy meeting, as Russia is facing a budget deficit of about $18 billion next year.
Russia?s Finance Minister Alexei Kudrin suggested by putting up extra oil revenues into Stabilization Fund to help Russia quickly pay off its external debts.
The move is backed by Prime Minister Mikhail Fradkov who wants to create more room to boost slowing growth by upping public spending.
