April 11, 2022
1 min read

Russia increases spending fund to ensure economic stability

The government’s reserve fund is a cash cushion to be used for unexpected spending that was not projected in the state budget. Last year, it was used for one-off social payments and to fight the pandemic…reports Asian Lite News

The Russian government said on Sunday it has increased its reserve fund used for emergency spending by 273.4 billion roubles ($3.52 billion) to ensure economic stability against the backdrop of Western sanctions over Ukraine.

The sanctions, imposed after Russia invaded Ukraine on Feb. 24 in what Moscow describes as a “special military operation”, cut Russia off from the global financial system and supply channels.

Western nations are also moving closer to a complete ban on energy from Moscow to strip the Kremlin of its biggest source of revenue.

The government has already pledged more than 1 trillion roubles in anti-crisis support to businesses, social payments and to families with children, which will take up all of this year’s incoming revenues, so there will be no budget surplus. 

“The funds, among other things, will be used to implement measures aimed at ensuring economic stability in the light of external sanctions,” the government said in a statement on Sunday.

The government’s reserve fund is a cash cushion to be used for unexpected spending that was not projected in the state budget. Last year, it was used for one-off social payments and to fight the pandemic.

The government said the main source of the reserve fund’s increase was 271.6 billion roubles in additional energy revenues received in the first quarter, as oil and gas prices rose in response to the recovery from the impact of Covid-19 and the Russia-Ukraine conflict raised the risk of disrupted supply.

Russia supplies around 40% of the European Union’s natural gas consumption, which the International Energy Agency values at more than $400 million per day. The EU gets a third of its oil imports from Russia, about $700 million per day.

ALSO READ-US President to sign bills to scrap Russia, Belarus trade status

Previous Story

Protestors burn effigies of Rajapaksas

Next Story

President meets ex-President

Latest from -Top News

Islamists Rise Under Yunus Rule

After the departure of former Prime Minister Sheikh Hasina in August 2024, Islamic parties in Bangladesh, crushed for years by the Awami League government, have made inroads into the political arena…writes Baidya

TIES WITH CHINA: Is Bangladesh Going Lanka Way?

Plans for nine Special Economic Zones, including Chinese-developed sites in Chattogram and Chandpur, promise jobs but risk creating enclaves where Beijing’s economic priorities overshadow Bangladesh’s….reports Asian Lite News On a humid March

Khaleda Zia’s Son Return Looms as Yunus Faces Heat

The core question remains whether Rahman can provide leadership in politically turbulent times in Bangladesh….reports Asian Lite News Speculation is mounting in Bangladesh over the possible return of Tarique Rahman, son of

India Eyes Top 5 Spot in Global Entertainment

With focused investments, policy support, and infrastructural upgrades, India is on track to position itself as one of the top five live entertainment destinations globally by 2030…reports Asian Lite News Fueled by
Go toTop

Don't Miss

Kim receives drones as gifts from Russia

Kim said the Russian military and its people will inherit

Russia, IAEA discuss safety of Zaporizhzhia N-plant

Capturing the key city of Bakhmut could enable Russian forces