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| Oil price briefly falls below $30 a barrel | |
| (about 3 hours later) | |
| Oil prices have briefly fallen below $30 a barrel on international markets for the first time since April 2004, before recovering again. | |
| Brent crude, used as an international benchmark, fell as low as $29.96, but bounced back to trade at $30.22. | |
| Oil prices have fallen by 70% in the past 15 months. | |
| Earlier, Russia's Prime Minister, Dmitry Medvedev, warned tumbling oil prices could force his country to revise its 2016 budget. | |
| He said that the country must be prepared for a "worst-case" economic scenario if the price continued to fall. | He said that the country must be prepared for a "worst-case" economic scenario if the price continued to fall. |
| Taxes from oil and gas generates about half the Russian government's revenue. | Taxes from oil and gas generates about half the Russian government's revenue. |
| The 2016 federal budget that was approved in October was based on an oil price of $50 a barrel in 2016 - a figure President Vladimir Putin has since described as "unrealistic". | The 2016 federal budget that was approved in October was based on an oil price of $50 a barrel in 2016 - a figure President Vladimir Putin has since described as "unrealistic". |
| Government departments have been ordered to cut spending by 10%, repeating a policy imposed in 2015, Reuters reported. | Government departments have been ordered to cut spending by 10%, repeating a policy imposed in 2015, Reuters reported. |
| Pensions and pay for government workers will be protected from the cuts, which could save as much as 700bn roubles (£6.3bn; $9.1bn). | Pensions and pay for government workers will be protected from the cuts, which could save as much as 700bn roubles (£6.3bn; $9.1bn). |
| Finance minister Anton Siluanov said that the Russian budget could only be balanced at an oil price of $82 a barrel. | Finance minister Anton Siluanov said that the Russian budget could only be balanced at an oil price of $82 a barrel. |
| 'New realities' | 'New realities' |
| He said the 2016 budget should be revised to assume an oil price of $40 a barrel. | He said the 2016 budget should be revised to assume an oil price of $40 a barrel. |
| "Our task is to adapt our budget to the new realities," Mr Siluanov said. | "Our task is to adapt our budget to the new realities," Mr Siluanov said. |
| Economy Minister Alexei Ulyukayev warned that Russia faced a long period of low commodity prices with oil at $15 or $20 a barrel. | Economy Minister Alexei Ulyukayev warned that Russia faced a long period of low commodity prices with oil at $15 or $20 a barrel. |
| "The biggest risk is that there will be low prices for a long time - that is, for years, for decades," he said. | "The biggest risk is that there will be low prices for a long time - that is, for years, for decades," he said. |
| Mr Medvedev also said that high interests rates were holding back economic growth in Russia. | Mr Medvedev also said that high interests rates were holding back economic growth in Russia. |
| The Bank of Russia held rates at 11% last month, with governor Elvira Nabiullina warning of "high volatility" in global markets. | The Bank of Russia held rates at 11% last month, with governor Elvira Nabiullina warning of "high volatility" in global markets. |
| A year ago the central bank shocked markets by increasing rates from 10.5% to 17%. | A year ago the central bank shocked markets by increasing rates from 10.5% to 17%. |
| Inflation stands at 15% in Russia, but the bank hopes it would fall to 4% by next year. | Inflation stands at 15% in Russia, but the bank hopes it would fall to 4% by next year. |