Russia should be prepared for a "long exit from the crisis" and
expects to borrow some $36 billion domestically and abroad, Finance Minister
Alexei Kudrin said Tuesday.
Kudrin said that the government will borrow $17 billion-$18 billion abroad and
the same amount within Russia, adding that the country's budget deficit for
this year may exceed 8% of gross domestic product.
Russia derives a large chunk of its budget funds from taxes on oil export and
extraction, and Kudrin said the budget for this year is based on an oil price
of $57-$58 a barrel, with next year's budget based on $58 a barrel.
Kudrin was addressing investors at a conference held by state-controlled lender
OAO Bank VTB (VTBR.RS), and said that the state will reduce its stake in VTB in
the medium term.
As part of its efforts to support Russia's financial system through the crisis,
the state has provided banks with $40 billion in additional capital, Kudrin
added.