Russia’s budget deficit forces Kremlin to ask for loans

The Finance Ministry of the Russian Federation considers entering the market of foreign borrowing this year, for the first time since 2013, Deputy Finance Minister Sergei Storchak has told the reporters on Monday.

"We’ll see. Perhaps, we will be preparing the issue after all," he said.

Read also"We have lost": Sberbank of Russia's CEO calls Russia "downshifter state"The Ministry of Finance can place bonds worth up to $3 billion (RUB 235 billion at the current rate) on foreign markets in 2016, according to the government’s resolution signed in December. This is the maximum permissible amount of foreign borrowing, not a plan, the report reads. The last time Russia entered the international markets was in September 2013, selling bonds worth $6 billion, maturing in 2019, 2023 and 2043, respectively.

Read alsoReuters: Russia allots $1.7 bln for real economy in draft anti-crisis planBased on the current State Budget for 2016, the government will have to cover the deficit of RUB 2.36 trillion, of which the lion's share is supposed to be taken from the reserve fund. But because of the drop in oil prices, the budget may be short of RUB 1.5-3 trillion, the officials estimate. Therefore, the deficit may turn out higher if spending is not cut and additional revenues are not raised.

Read alsoRussia remains open to talks with Ukraine on $3 bln debt