Russia will spend .8 billion from the wealth fund on infrastructure projects in 2022

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

KAZAN (Reuters) – Russia plans to spend 400 billion rubles ($6.8 billion) of the National Wealth Fund on investment projects this year, on top of the 535 billion rubles it spent in the past to maintain financial stability, a senior official said on Friday. .

The balance in the NWF, a rainy day fund consisting of oil and gas revenues, amounted to 11.9 trillion rubles, or 8.9% of GDP, as of the end of August.

Its liquid assets — or cash in bank accounts that can be mobilized faster — amounted to 8.3 trillion rubles, or 6.2% of GDP.

Balance and liquid assets numbers declined from 9.1% and 6.5% of GDP in the previous month.

“These are long-term investment funds that we will direct. They are our contribution to the investment cycle,” Russia’s First Deputy Economy Minister Ilya Torosov said at a banking forum in Kazan on Friday.

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

Russia sent troops into Ukraine on February 24, and the Western sanctions that followed reduced its oil and gas purchases, while many foreign companies left the country.

As a result, Russia plans to spend up to 4 trillion rubles from the National Water Fund separately this year to finance a budget deficit seen at around 1% of GDP, according to the Finance Ministry.

Torosov said that of the 535 billion rubles spent on maintaining financial stability earlier this year, the state financial entity Dom.RF, which is responsible for housing investments, and Gazprombank, jointly owned by Gazprom (MCX:), received 50 billion rubles. to support both of them. .

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Just over 300 billion rubles were spent to support Russian Railways, the country’s largest employer, and Aeroflot, Russia’s leading airline, among others.

(1 dollar = 58.98 rubles)

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