REUTERS
Two senior financial officials told Reuters that authorities were discussing the possibility of calculating ruble rate levels against the dollar that could compensate for some budget losses caused by tumbling oil export revenues by preventing the ruble from strengthening too much.
The discussions are a measure of the plight facing the Russian budget. It could face an additional shortfall of up to RUB 2.5 trillion ($31.7 billion) this year if crude prices stay at around $30 per barrel, putting at risk the target of keeping the deficit at 3% of gross domestic product.
The steps now being considered by officials to fill the gap are unorthodox - illustrating how Moscow has run out of easy fixes after crude's plunge from a peak of around $115 in June 2014, and is scraping the barrel to keep the budget on track.
Read alsoGoldman Sachs admits calls to invest in ruble mistakePresident Vladimir Putin's government has already suggested it may tap the sovereign wealth Reserve Fund, raise oil taxes, sell off some of the state's biggest firms or hike dividend payouts from them, among potential measures.
The ruble rate level discussions reflect the fact that a weaker domestic currency would shore up the country's finances as every dollar Russia earns from exporting oil buys more rubles that can go on state spending - even though in the longer term it could damage the economy.
In a statement which followed the publication of the initial article by Reuters, the press service of the Finance Ministry said no discussions on weakening the ruble were held: "On the contrary, we are currently working on measures to consolidate the budget and reduce the federal budget deficit."
"Such measures, in the view of the Russian Finance Ministry, will have a strengthening effect on the ruble," the report said.