Russian Prime Minister Dmitry Medvedev admits anti-Russia sanctions could have a stronger negative effect on the country’s economy.

“The effect of other negative factors abides, of course, and a whole set of them may get stronger, meaning the so-called sanctions,” he said at the government’s meeting on 2018-2020 federal budget on Monday.

According to Medvedev, the commodities market is still “rather unstable” despite relatively high oil prices in early 2017.

“It is necessary to take all this into consideration,” he said, adding that it is also important “to ensure a sustainable budget system, take into account the resources and demands, and get to an adequate level of deficit.”

Medvedev urges Cabinet ministers to avoid exaggerated expectations from the economic situation.

“Certainly, the approach towards all our decisions should be as practical as possible. There should be no exaggerated expectations,” Medvedev said.

The government starts to proactively working on the three-year budget, the prime minister said. “We will discuss today our approaches to [socioeconomic development] outlook to find the balance between budget revenues and expenditures, he said.

The Cabinet selected the base case as the scenario for the federal budget already in April, Medvedev said. “We will continue working on its basis,” he added.

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