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There is so much trouble in Russia that the country is already using up its last reserves

There is so much trouble in Russia that the country is already using up its last reserves

The newspaper states that the fiscally conservative Russian authorities have so far used NWF funds cautiously. Thursday’s move indicates that they want to be more and more creative in supporting the economy, While Moscow is increasing spending on what it calls a “special military operation” in Ukraine.

The ministry also stated that according to the draft proposals, the minimum limit will be reduced to 7% of GDP from the current 10%, as the fund can invest in other financial instruments.

By amending the budget law, the ministry aims to enable the financing of high-priority and self-sustaining infrastructure projects from the National Assets Fund, as well as the implementation of investments to confront crises, regardless of the size of the fund’s liquidity. assets, states justification ministry.

The ministry suggested that the total volume of these investments should not exceed 4.25 trillion rubles ($61.24 billion).

These changes will provide reliable support for the main sectors of the Russian economy in the current difficult geopolitical and macroeconomic conditions.

The ministry said.

The NWF is Russia’s sovereign wealth fund, built from multi-year earnings from the country’s oil and gas exports. On January 1, the fund amounted to $148.4 billion, equivalent to 7.8% of GDP, after falling by $38.1 billion in December, Where the government withdrew liquidity to cover the budget deficit.

But only $87.2 billion, or 4.6% of GDP, was in liquid assets, and the ministry warned that amount could drop to 1.4% of GDP by 2024. Which, according to the audit office, would be the lowest rate in 20 years.

See also  NATO makes an offer to Russia, followed by an economic downturn on Ukraine

As of February 1 last year, three weeks before Russia sent its troops into Ukraine, the fund totaled $174.9 billion, or 10.2% of projected GDP.

Cover image: Getty Images

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