The rule of distribution of oil and gas revenues, which is being brought back into the budget planning process, seeks to reduce the state budget’ s susceptibility to volatile oil price fluctuations. The new elements of a more conservative financial policy, such as the legislatively imposed state expenditure limit and the “automatic” accumulation of a portion of oil and gas revenues in the sovereign funds, will allow in the medium term for an increased sustainability of the budget system, a moderate federal budget deficit in 2013 and 2014 and a balanced budget in 2015. Federal government borrowings in the capital markets will be the main source of financing the federal budget deficit. The volume of prospective issuance of public securities primarily in the domestic bond market may equal up to RUB 1.2 trillion per annum.
Raising debt capital in the markets on acceptable terms and conditions and in the required amount will be challenging. In this context, continuing to prioritise development of the domestic debt market is considered to be the most important goal of public debt policy in the medium term. It is necessary to complete the initiated reforms aimed at market liberalization and modernization of its infrastructure. The key objectives in this regard remain the expansion of the investor base and the development of user-friendly and competitive conditions for market participants.
The public debt policy in 2013-2015 will be focused on funding the federal budget deficit by means of issuance in the domestic and international capital markets on favorable terms, ensuring an optimal balance between yields and duration of sovereign debt obligations, maintaining Russia’s credit ratings at a high level, and establishing adequate market benchmarks for Russian corporate borrowers. At the same time, the policy will look to enhance the system of monitoring the corporate sector’s external borrowings and the mechanism of granting state guarantees.