Flood of Oil Cash Comes Just in Time for Putin Facing Discontent
- Budget could get 2.3% of GDP extra if gains hold, Sova says
- Putin under pressure to boost living standards ahead of vote
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Rising oil prices and a weak ruble could provide the Kremlin with as much as $33 billion in extra cash for social spending this year, giving Vladimir Putin the financial wherewithal to help head off growing public discontent.
Thanks to a 21% price surge this year, Russia now receives more rubles per barrel of Brent crude than any time since mid-2019. If oil remains high, the windfall would be enough to allow the budget to receive an extra 2.3% of gross domestic product, according to Sova Capital in Moscow.