Russia investing national welfare fund

RUSSIA / FSU POLITICS - In Brief 17 Sep 2019 by Alex Teddy
On September 12 Finance Minister Anton Siluanov announced that a decision had been made about the National Welfare Fund (NWF). The NWF is expected to be USD 28.2 billion in 2020. The NWF will be invested in domestic projects such as oil and gas infrastructure. The Gazprom cluster at Ust Luga, Novatek's LNG project in the Arctic were mentioned by name in relation to this. This will be welcome new for Arkady Rotenberg and Gennady Timochenko who are involved in these projects. Both men are confidantes of the president. Some of the NWF will be spent on export credits for those purchasing Russian goods. The Minister of Economic Development Maxim Oreshkin was keen to promote this policy. The Governor of the Bank of Russia Elvira Nabiullina has made no secret of her opposition to this policy. She fears it will increase inflation and need to an abrupt jump in the value of the RUR. Nabiullina has floated her own idea about raising the threshold at which oil revenues go to the NWF. The current budget cut off is USD 41.6. The idea of raising this has been proposed before. Last week a financial forum was held in Moscow and an International Banking Forum was held at Sochi. The mood was fairly bullish. The Gulf Crisis is increasing oil prices which always helps the Russian economy.

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