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

UK to equip Ukraine with deadly anti-ship missiles

Latest from -Top News

Multi-alignment, upgraded

With US ties strained and China tense, New Delhi taps Europe’s harder edge for co-development, clean tech and strategic autonomy, writes Manoj Menon India is recalibrating its great-power hedging as frictions with

India-EU Trade Deal Breakthrough Soon?

Negotiators report increased momentum in discussions, which have been given a boost from US President Donald Trump’s tariff offensive…reports Asian Lite News India and the European Union aim to finalise a trade

Europe Seeks Peace in Gaza

European countries condemn Israeli interception of Gaza-bound flotilla, demand safety of citizens…reports Asian Lite News Israel’s interception of an international flotilla carrying humanitarian aid to Gaza has sparked condemnation across Europe, with

GAZA: Egypt to Host Peace Talks

Egypt hopes the discussions will help “end the war and the suffering of the brotherly Palestinian people, which has continued for two consecutive years…reports Asian Lite News Egypt will host Israeli and

‘My Injuries Made Me’

During his four-year battle with injury, the incumbent fast bowling spearhead made occasional appearances but couldn’t bear the workload and demands of red-ball cricket….reports Asian Lite News England tearaway Jofra Archer believes
Go toTop

Don't Miss

Palestinian president discusses Mideast tension with Jordanian King, Putin

Palestinian President Mahmoud Abbas discussed the growing tension with Israel

Moscow mulls options if west refuses guarantees on Ukraine

In remarks broadcast on Sunday, Putin said that Russia submitted