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Ratings agency Standard and Poor's has warned that Russia faces having its debt rating cut if the price of oil drops significantly.

Standard and Poor's said a fall in the oil price could have a "huge impact" on the Russian economy.

The agency estimates that a $10-a-barrel fall in the price of oil would likely reduce Russian government revenues by $26 billion.

Standard & Poor's said Russia needs an average price of oil of $120 per barrel to balance its budget this year.

It suggested that oil is likely to remain above $100 per barrel, but said there is a chance of a sharp decline.

Based on reporting by AFP and BBC

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