MOSCOW, April 5 (RIA Novosti) - Russian Finance Minister Alexei Kudrin has spoken out against plans to raise cutoff oil prices starting in 2006. According to him, the government intends to bring the prices up to $27 per barrel, from the current $20, channeling the additional revenues into the Stabilization Fund.
Speaking at a symposium on economic modernization in Moscow Tuesday, Mr Kudrin said Russia's high oil revenues should go instead to finance institutional reforms. He said the plans to raise cutoff oil prices had to be reconsidered as this step may undermine the government's financial policy. The rate of inflation missed target levels this year and last; further deviation from budgetary targets may cause macroeconomic imbalance, warned the minister. "The debate is ongoing, although a preliminary decision has been made already," he said.
