Putin ordered to spend money of main Russian “money box”

Russian President Vladimir Putin ordered to start spending funds from the National Welfare Fund (NWF), the main state “money box”. According to him, the money must be used to finance investment projects, RIA Novosti reports.

At a meeting on investment activity, the head of state pointed out that if the current external economic situation persists, 180-200 billion rubles will come to the NWF every month. The liquidity portion of the fund has exceeded seven percent of GDP, so the law allows the proceeds to be directed to other needs.

Putin instructed the government to prepare a list of projects, including infrastructure projects, in order to understand where the money could be invested. Ideas must be submitted within a month.

As of March 1, 2021, the volume of the NWF amounted to 13.552 trillion rubles, its liquid part – 8.687 trillion, that is, 7.5 percent of the projected GDP for the year.

During this meeting, Putin also explained why he spoke harshly with members of the government at one of the previous meetings. According to him, the indignation was caused by the uncontrolled rise in prices for basic foodstuffs, which the ministers could not notice and prevent in time.

Earlier today, the Accounts Chamber announced that in 2021 the NWF will have nothing to replenish. According to the auditors, instead of an excess of oil and gas revenues, due to which the fund is increasing, a shortage of them has formed. However, the Ministry of Finance denied these conclusions, announcing forecasts for the receipt of about two trillion rubles.

The US is currently considering the introduction of new sanctions against Russia. According to sources, the White House may take a blow on ruble government bonds for the repeated use of chemical weapons. As stated in the report of the Central Bank of Russia, American funds own federal loan bonds (OFZ) in the amount of more than two trillion rubles. If the fears are justified, then these investors will have to sell Russian government securities. Most likely, the state will have to buy them out at the expense of the NWF or the budget.

/Media reports.