Russia plans to tweak reserve fund mechanism to ensure it is replenished with oil revenues, finance minister says

MOSCOW: The Russian finance ministry plans to lower the cut-off price for oil above which oil revenues go into the fiscal reserve fund to try to ensure that the fund is sufficiently replenished, Finance Minister Anton Siluanov said on Thursday.

The cut-off price will be lowered by $1 every year to bring it to $55 per barrel in 2030, Siluanov said.

The cut-off price is currently at $60 per barrel.

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Siluanov said that the measure is needed to shield the Russian budget from negative external factors such as oil price fluctuations and Western sanctions.