Russia on self-help drive to stop spending oil profits

MOSCOW, April 12 (Reuters) - Russia's commitment to economic reform will soon be tested by a plan to place its fragile public finances on a stable footing - primarily by weaning them off the ups and downs of the global oil market.

Various proposals are being floated, but the main idea is to cap the amount of money energy-rich Russia can spend from its oil profits, saving windfalls instead.

In the first major policy initiative since Vladimir Putin's election as president in March, the Finance Ministry is advocating a new "fiscal rule" to tie government expenditures to the average oil price over the previous 10 years.

It will be the first item on the agenda of the new government to be appointed in May - and an early indicator of Putin's economic policy priorities at the outset of his six-year presidential term.

"The first and most important task is guaranteeing the budget's predictability and stability - here we need rules," Finance Minister Anton Siluanov said recently. Read More