MOSCOW, March 26 (Reuters) - President Vladimir Putin said on Thursday that Russian companies and the government should take a cautious approach when deciding how to spend windfall gains from higher
Putin Advises Prudent Use of Russia’s Rising Oil Revenues Amid Volatile Markets
Putin Urges Caution in Managing Oil Windfalls
MOSCOW, March 26 (Reuters) - President Vladimir Putin said on Thursday that Russian companies and the government should take a cautious approach when deciding how to spend windfall gains from higher oil prices resulting from the war in the Middle East.
Impact of Middle East Conflict on Russian Oil Revenues
The spike in oil prices has made Russia a major beneficiary of the war that the United States and Israel launched against Iran on February 28.
Putin’s Warning to Business Leaders
"Now that the prices of our traditional exports are rising, but the markets are in turmoil, there may be a temptation to take advantage of the situation," Putin told business leaders in Moscow.
Risks of Mismanaging Extra Revenue
He said this temptation could involve squandering the extra revenue, paying it out in company dividends or, in the state’s case, expanding budget spending.
Call for Fiscal Prudence
"We must remain prudent. If the markets swing one way today, they could swing the other tomorrow," he added.
"A moderate degree of conservatism and a moderately conservative approach are needed, both in the corporate sector and in public finances," he said.
Reporting Credits
(Reporting by Reuters; Writing by Anastasia Teterevleva and Anna Peverieri; Editing by Mark Trevelyan)
