Russian oil price cap hits Kremlin's export revenue, may widen deficit

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Russian oil price cap hits Kremlin's export revenue, may widen deficit
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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 hit the Kremlin's export revenue, Finance Minister Anton Siluanov said on Tuesday.

"Is a bigger budget deficit possible? It is possible, if revenues are lower than planned. What are the risks next year? Price risks and restrictions," Siluanov said in the latest sign yet that the price cap could be working as intended. Russian President Vladimir Putin has tried to shrug off the price cap, arguing that the $60 level was already similar to what the Kremlin was yielding from oil sales.

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