Russian oil price cap is hitting the Kremlin's export revenue and may widen its budget deficit, finance minister says

The $60-per-barrel price cap on Russian oil is starting to affect the Kremlin's export revenue.

He said that the budget deficit could grow beyond 2% of GDP as Russia spends heavily on its war against Ukraine.

A bigger budget deficit is possible. It is1-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-6556 is1-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-65561-6556 Next year, what are the risks? Siluanov said that the price cap might be working as intended.

The European Union and Australia joined the Group of Seven nations in trying to cap the price of Russian oil.

Putin argued that the $60 level was similar to what the Kremlin was getting from oil sales.

Following comments from Russian officials last week that production could drop by up to 7%, Siluanov admitted Tuesday that a drop in energy export volumes was possible.

Logistic costs will go up. He said that discounts might change as a result.

Siluanov said that the Kremlin will continue to spend as needed. Russia could use both loans and the National Wealth Fund if export volumes decline.

Russia has relied heavily on debt in order to fund its war on Ukraine, and the government has raised more than 3 trillion ruble this quarter.