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High oil, weak rouble to boost Russian finances before election but pose inflation risks


Higher oil, weaker rouble could improve outlook - analysts
Sovereign wealth fund seen above $200 bln this year
But weak rouble and social spending could fuel inflation
MOSCOW, Feb 25 (Reuters) - Rising oil prices and a weak rouble could boost Russian state coffers before a parliamentary election this autumn, giving the authorities more leeway for social spending despite the risk of fuelling inflation.
This year’s budget deficit is forecast to come in at 2.4% of gross domestic product (GDP), but Russia could end up with a surplus and even pocket up to $25 billion in additional revenues from higher oil prices and a weak rouble, analysts say. ....

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