Russian Govt Raised Urals Crude Price

Russian President Vladimir Putin signed a law on the price increasing of the Urals heavy crude oil.

The law, which was adopted by the State Duma, established the new cutoff price at $27 per barrel. Earlier the cutoff price was set at $22 per barrel.

All revenues received from oil exports above the cutoff price will be used for Russia?s Stabilization Fund replenishment.

The presidential press service representative said that the measure will allow the government to increase budget expenditures and to conduct more dynamic and flexible budget policies in the mid-term perspective while preserving macroeconomic stability and maintaining a balanced federal budget.

The Russian stabilization fund was created in 2003 to finance social welfare programs and emergencies such as flood relief.