A view of Moscow, Russia. (Reuters)

Russia raids wealth fund to cover country’s budget deficit

Russia And The Caucasus

AFP

Published: 20 October ,2022: 08:33 PM GST Updated: 20 October ,2022: 08:56 PM GST

Russia on Thursday raided its main sovereign wealth fund to the tune of $16.2 billion to cover its budget deficit as its military offensive in Ukraine weighs on public finances.

For the latest headlines, follow our Google News channel online or via the app.

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.

Russia’s National Wealth Fund stood at $188 billion in October 2022, according to finance ministry data.

Russia says West’s supplies of weapons to Ukraine are going onto the black market

Spain, France, and Portugal agree on Green Energy Corridor

Get the latest stories from AlArabiya on Google News