RUSSIA TAPS WEALTH FUND TO COVER WAR DEFICIT

Thu 20 October 2022:

As its military offensive in Ukraine strains public finances, Russia raided its main sovereign wealth fund on Thursday, taking $16.2 billion out to cover its budget deficit.

The finance ministry said the government had approved taking the funds from the National Wealth Fund “to finance budgetary expenses” and “ensure the budget’s equilibrium.”

It added the funds would be used primarily to “settle public debt and provide loans to regions,” as well as pay social benefits to Russian citizens.

Russian federal government spending from January to September increased by 21 percent from the same period last year, according to finance ministry data, due to expenses related to its military operation in Ukraine.

A government forecast published last month put the budget deficit this year at 0.9 percent of GDP.

The National Wealth Fund of Russia had a value of $188 billion as of October 2022, according to data from the finance ministry.

SOURCE: INDEPENDENT PRESS AND NEWS AGENCIES

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