Rouble to Benefit from Record Gas Prices but Political Fears could Outweigh

European spot gas prices rose fivefold this year, fueled by booming demand and competition for gas globally as economies recover from the coronavirus pandemic.

Andrey Ostroukh, Reuters

The rouble is set to benefit from record high prices for natural gas in Europe as gas revenues are not absorbed by the National Wealth Fund to the extent that oil revenues are, but strained relations with the West could outweigh the advantage.

Russia's budget rule channels extra energy revenues to the National Wealth Fund when oil prices exceed $43.3 per barrel. It was adopted in 2017 to limit the budget deficit and shield the rouble from oil price swings.

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