Russia’s National Wealth Fund Looks Inward to Shore Up Industries and Developments
Posted on 09/26/2022
As oil prices rise, Russia is seeking to invest its National Wealth Fund domestically. Russia’s finance ministry expects an additional 403.4 billion roubles (US$ 6.65 billion) in budget revenue in September 2022 due to higher oil prices. On September 23, 2022, in Kazan at a banking forum, Russia’s Deputy Economy Minister Ilya Torosov mentioned that Russia plans to invest 400 billion roubles (US$ 6.9 billion) from the National Wealth Fund into domestic investment projects this year.
“These are long-term investment funds that we are going to direct. It is our contribution to the investment cycle,” according to translated remarks from Ilya Torosov at the forum.
The Russian government plans to raise money on the domestic debt market in September 2022 following a seven-month pause in borrowing. Likely the fundraising will be rouble-denominated OFZ bonds. Russia suspended borrowing through OFZ bonds in February 2022
Ministry of Transportation
Russia’s Ministry of Transportation sent a request to local airlines about an idea to acquire Airbus and Boeing jets operating in the country from their Western lessors using money from the National Wealth Fund. Russian carriers continue to operate nearly 740 regional and commercial airliners owned by foreign lessors but forcefully kept in Russia under the Kremlin’s order. The National Wealth Fund would lend the money at a rate of 1.5% under a 15-year term. The airlines would have to repay the loans as a special measure to resolve the ongoing disputes with the foreign lessors.
Keywords: Russian National Wealth Fund, National Welfare Fund.
