By Olga Razumovskaya

MOSCOW--Russia's budget for 2015 to 2017 should take into consideration the consequences of sanctions against Russia for the country's economy, Russian Prime Minister Dmitry Medvedev said at a cabinet budget meeting on Tuesday, Interfax news agency reported.

The prime minister called for a "realistic and balanced budget, a budget that takes into account the current state of the Russian and global economies, including negative consequences of sanctions, which are currently being imposed against specific Russian companies, and effectively, against the whole country," Mr. Medvedev was quoted by the news agency as saying.

Russia has been slapped by new tougher sanctions by the Westthat target certain banks, the military and oil sectors as the U.S. and the European Union attempt to make President Vladimir Putin more cooperative in solving the crisis in Ukraine. This measure seemed unlikely a few weeks ago.

Russian officials have said repeatedly that the sanctions will only encourage Russia to be more self-reliant and Mr. Putin has encouraged the government to seek innovative ways to secure the growth of the Russian economy and its financial system.

Mr. Medvedev also said he does not rule out that the tax load may increase in 2015 to 2017 as the government is working out the priorities for those years. "Different scenarios (are possible), even increasing the tax load, although this measure should only be used as the last resort."

Write to Olga Razumovskaya at olga.razumovskaya@wsj.com

(END) Dow Jones Newswires

August 05, 2014 07:15 ET (11:15 GMT)

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