Russia to spend $6.8 billion from wealth fund on infrastructure projects in 2022

1 min


176
115 shares, 176 points

KAZAN (Reuters) -Russia plans to spend 400 billion roubles ($6.8 billion) of its National Wealth Fund money on investment projects this year, on top of the 535 billion roubles it has previously spent to maintain financial stability, a senior official said on Friday.

The balance in the NWF, a rainy-day fund made up of oil and gas revenues, stood at 11.9 trillion roubles or 8.9% of gross domestic product (GDP) as of the end of August.

Its liquid assets – or cash in banking accounts that can be mobilised faster – stood at 8.3 trillion roubles, or 6.2% to GDP.

The balance and liquid-asset figures were down from 9.1% and 6.5% of GDP the month before.

“These are long-term investment funds that we are going to direct. It is our contribution to the investment cycle,” Ilya Torosov, Russia’s first deputy economy minister told a banking forum in Kazan on Friday.

According to Torosov, Russia plans to return the cash spent on the infrastructure projects – which he did not give details of – in 20 years. Moscow has previously announced investments into creating new highways and expanding its railway network among other plans.

Russia sent its troops into Ukraine on Feb. 24 and the western sanctions which followed led to reduced purchases of its oil and gas, while many foreign companies left the country.

As a result, Russia plans to spend up to 4 trillion roubles from the NWF separately this year to finance a budget deficit seen at around 1% of GDP, according to the finance ministry.

Torosov said that out of 535 billion roubles spent on maintaining financial stability earlier this year, its state financial entity Dom.RF, responsible for housing investments, and Gazprombank, co-owned by Gazprom, received 50 billion roubles in support each.

Just over 300 billion roubles was spent to support Russian Railways, the country’s top employer, and Aeroflot, Russia’s flagship airline, among others.

($1 = 58.98 roubles)

(Reporting by Elena Fabrichnaya and Alexander Marrow; Editing by Hugh Lawson)

Source: KFGO


Like it? Share with your friends!

176
115 shares, 176 points

What's Your Reaction?

Cute Cute
2
Cute
Fun Fun
21
Fun
Hate Hate
16
Hate
Confused Confused
5
Confused
Fail Fail
24
Fail
Geeky Geeky
18
Geeky
Love Love
10
Love
OMG OMG
5
OMG
Choose A Format
Personality quiz
Series of questions that intends to reveal something about the personality
Trivia quiz
Series of questions with right and wrong answers that intends to check knowledge
Poll
Voting to make decisions or determine opinions
Story
Formatted Text with Embeds and Visuals
List
The Classic Internet Listicles
Countdown
The Classic Internet Countdowns
Open List
Submit your own item and vote up for the best submission
Ranked List
Upvote or downvote to decide the best list item
Meme
Upload your own images to make custom memes
Video
Youtube, Vimeo or Vine Embeds
Audio
Soundcloud or Mixcloud Embeds
Image
Photo or GIF
Gif
GIF format