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MOSCOW Nov 30 (Reuters) - One of Russia's top economic advisers on Sunday halved 2009 projections for both the price of Russian oil, its key cash earner, and the country's economic growth forecast.
On Monday, deputy minister for economic development, Andrei Klepach, and his team of advisers will officially present new forecasts for Russia after a global credit squeeze that triggered economic turmoil and weakened the price of oil.
And at an investment conference in Vienna, he said Russian oil will hover at $50 a barrel next year compared to an earlier estimate of $95 per barrel, and the economy will grow between 3 percent and 3.5 percent in 2009, down from a previous forecast of 6.7 percent.
'In line with our basic scenario, the average price of Urals oil in 2009 will be $50 per barrel, in 2010 $55 per barrel, and in 2011 $60 per barrel,' he told an economic forum in Vienna according to the RIA Novosti news agency.
On Friday, Urals oil traded at just under $46 per barrel, compared with about $140 per barrel earlier this year. Since then, global credit lines have closed, forcing world stock markets and commodity prices to tumble.
The Russian government has said it can defend itself next year against a price of about $50 per barrel of oil because of its roughly $475 billion in gold and cash reserves, built up mainly by oil and gas exports, which have fueled an economic boom.
'The drop in oil price to $50 per barrel does not create a crisis,' Klepach said. 'The Russia economy (in 2009) will increase by 3 (percent) to 3.5 percent and in 2010, reach the 5 percent level.'
Russia has already pledged $200 billion to prop up indebted companies. The country has spent $50 billion defending the rouble against a potential devaluation, which has already lost value.
The Russian stock market has also lost around 75 percent of its value since hitting a high in May.
(Writing by James Kilner; Editing by Andrew Macdonald and Jan Paschal) Keywords: RUSSIA FORECAST/ (james.kilner@reuters.com, +7 495 775 1242) COPYRIGHT Copyright Thomson Reuters 2008. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
MOSCOW Nov 30 (Reuters) - One of Russia's top economic advisers on Sunday halved 2009 projections for both the price of Russian oil, its key cash earner, and the country's economic growth forecast.
On Monday, deputy minister for economic development, Andrei Klepach, and his team of advisers will officially present new forecasts for Russia after a global credit squeeze that triggered economic turmoil and weakened the price of oil.
And at an investment conference in Vienna, he said Russian oil will hover at $50 a barrel next year compared to an earlier estimate of $95 per barrel, and the economy will grow between 3 percent and 3.5 percent in 2009, down from a previous forecast of 6.7 percent.
'In line with our basic scenario, the average price of Urals oil in 2009 will be $50 per barrel, in 2010 $55 per barrel, and in 2011 $60 per barrel,' he told an economic forum in Vienna according to the RIA Novosti news agency.
On Friday, Urals oil traded at just under $46 per barrel, compared with about $140 per barrel earlier this year. Since then, global credit lines have closed, forcing world stock markets and commodity prices to tumble.
The Russian government has said it can defend itself next year against a price of about $50 per barrel of oil because of its roughly $475 billion in gold and cash reserves, built up mainly by oil and gas exports, which have fueled an economic boom.
'The drop in oil price to $50 per barrel does not create a crisis,' Klepach said. 'The Russia economy (in 2009) will increase by 3 (percent) to 3.5 percent and in 2010, reach the 5 percent level.'
Russia has already pledged $200 billion to prop up indebted companies. The country has spent $50 billion defending the rouble against a potential devaluation, which has already lost value.
The Russian stock market has also lost around 75 percent of its value since hitting a high in May.
(Writing by James Kilner; Editing by Andrew Macdonald and Jan Paschal) Keywords: RUSSIA FORECAST/ (james.kilner@reuters.com, +7 495 775 1242) COPYRIGHT Copyright Thomson Reuters 2008. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.