SOVEREIGN ECONOMY: TOP EVENTS OF THE WEEK

The State Duma of the Russian Federation has adopted a draft federal budget for 2024 and for the planned period of 2025/2026 in the third reading. Revenues for 2024 are planned at 35.0653 trillion rubles (19.5% of GDP); expenditures - 36.6607 trillion rubles (20.4% of GDP); the federal budget deficit should amount to 1.5954 trillion rubles (0.9% of GDP).

Russia has sharply reduced its maritime crude oil exports. It happened in anticipation of the OPEC+ oil ministers' meeting, where participants are expected to report on their compliance with production cuts. Additionally, the US imposed sanctions on maritime companies and vessels on November 16. It applies for transporting Russian oil sold above the upper price limit of $60 per barrel.

The controversial windfall tax contributed less than 15% of the planned amount to the budget. The Russian budget has received around 40 billion rubles from the windfall tax, according to Anton Siluanov, the Minister of Finance. The windfall tax had to bring 300 billion rubles to the state. Officials still hope the main payment period is ahead, but the preferential period ends on November 30, 2023.

"AvtoVAZ" is scaling back its production plan due to the boycott by foreign banks. The introduction of US sanctions against "AvtoVAZ" in September led to both friendly and unfriendly foreign banks blocking the company's payments. As a result, there have been widespread refusals to cooperate from foreign suppliers, sub-suppliers, financial institutions, and banks.

"Gazprom" will reduce its investment program in 2024. The parent company PJSC "Gazprom" investment program for 2024 is planned at the level of 1.574 trillion rubles. For 2023, the size of the investment program for financing "Gazprom" was planned to be 2.3 trillion rubles. As a result of the review, based on the results of the work in the first half of the year, it was reduced by 334.34 billion rubles - to 1.966 trillion rubles.