Russia is taking steps to decrease its dependence on oil, with the government mulling a different formula for calculating the oil price for the state budget and measures to encourage other sectors of the economy to grow, Stanislav Voskresensky, Russian deputy minister of economic development, told CNBC.com on Thursday.
Russia's oil exports are both a blessing and a curse for the country, analysts told CNBC.com , as the recent fall in oil prices is likely to translate into a higher budget deficit, with half of the revenues to Russia's budget coming from the oil and gas sector.
"We are pretty concerned about this. That's why the government is coming up with rules to decrease the dependence on oil," Voskresensky said on the sidelines of the Saint Petersburg International Economic Forum (SPIEF).
The price of oil taken into account when the budget will be calculated will be based on historical prices, to ensure a possible fall is taken into account, Voskresensky said. "The budget will be calculated with a lower oil price," he explained, but did not elaborate on how many years will be taken into consideration when averaging the price.
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