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Putin: $50 a Barrel Oil in 2016 'Too Optimistic'

Image: Putin: $50 a Barrel Oil in 2016 'Too Optimistic'
Russian President Vladimir Putin

Thursday, 17 Dec 2015 08:09 AM

Russian President Vladimir Putin said on Thursday the $50 per barrel price for oil factored in the 2016 budget was too optimistic and the government needed to make adjustments.

"We had calculated next year's budget based on $50 per barrel. This is a very optimistic valuation today. Now it's already $38. That's why we will have to correct something there," Putin said at his annual news conference.

He said the peak of the economic crisis in Russia had passed but the government's forecasts for 0.7 percent economic growth in 2016 and 1.9 percent growth in 2017 were based on assumptions the oil price would be $50 per barrel.

Putin also said that an additional tax burden on Russian energy firms should not last indefinitely.

"It's important that it does not long forever," Putin told his annual news conference.

"Industry players ... are not cutting their development plans and production has even increased. But the government should watch very closely what is going on in the sector in order not to kill the goose that lays the golden eggs."

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Russian President Vladimir Putin said on Thursday the $50 per barrel price for oil factored in the 2016 budget was too optimistic and the government needed to make adjustments.
russia, putin, oil, crude
178
2015-09-17
Thursday, 17 Dec 2015 08:09 AM
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