"Russia facing impending debt crisis"
In a significant development, Russia's Minister of Finance, Anton Siluanov, has confirmed that the Russian government has accepted the prospect of low oil prices. This acceptance, coupled with budget adjustments, suggests a potential decrease in the government's income from oil.
Siluanov revealed that the Russian government is planning to budget for a yearly decrease in the oil price threshold by $1 until 2030. This move indicates a strategic response to the expected falling oil prices and suggests that the government expects oil prices to continue falling in the next five years.
The Russian government's revenue from bond sales is primarily being used to pay off old debts, amounting to 90%. This leaves little room for manoeuvre in the face of decreasing oil and gas revenues, a situation that economist Igor Lipstitz described as "not normal."
Lipstiz, in an interview with Dmitry Gordon, expressed concern about Russia's financial situation. He predicted that everyone might be "thrown overboard" under these circumstances, a reference to potential drastic measures by the Russian authorities. Although the name of the economic expert fearing that Russian authorities under current conditions will have to take radical measures involving significant social spending cuts is not explicitly mentioned in the provided search results, Lipstitz's words highlight the gravity of the situation.
Under these conditions, the Russian authorities may have to take radical steps, possibly involving a significant reduction in social spending. This could mean tough times ahead for the Russian population, as the government seeks to navigate the challenging economic landscape.
The current situation, with decreasing oil and gas revenues, is a stark reminder of the importance of diversifying Russia's economy. As the world continues to grapple with the effects of the pandemic and geopolitical tensions, it remains to be seen how Russia will adapt and respond to these challenges.
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