Russia's former finance minister Alexei Kudrin said Tuesday, December 13, he sees the beginning of the second wave of economic crises in the world, which may in turn cause a drop in oil prices, and result in Russia's difficulty in implementing its 2012 budget.
In his first live interview since his sacking from the post by President Dmitry Medvedev in September over the criticism of the excessive budget spending and military expenses, Kudrin said he doesn't see the Kremlin responding to the mass protests over what the opposition called the rigged parliamentary elections, by increasing budget spending. The interview was broadcast by Ekho Moskvi radio station.
"The 2012 budget is approved, and it's hardly possible that the parliament would have time to change it before the presidential elections in May," he said.
Kudrin also confirmed his plans to "facilitate the creation of the centre-right liberal political force." However he fell short to provide details as to what his role may be.
Kudrin, a long-time defender of budget rigidity said however, the "populist spending decisions" made in the course of 2011 make the implementation of the budget "risky."
"It would be difficult to implement the budget if the global economic situation worsens," he said, noting the country's budget is 40% dependent on oil revenue,” Kudrin said.
His disagreement with higher military spending in particular led to a harsh criticism from Medvedev and a subsequent departure.
Kudrin said he sees danger of a recession in the euro zone, the probability of which he sees at 70%, which in turn may cause difficulties in Russia's plan to borrow RUB800 billion in 2012 and get the needed revenue from oil. Henoted Russia still has its rainy-day reserve fund, which will last for a year if oil prices drop below $80 a barrel, Global Finance reported.
