Russia's reserves: Moscow resolutely went against the will of the IMF
The Russian authorities announced their intention to send money from the National Wealth Fund to domestic projects, in return for withdrawing them abroad. It may seem to the townsfolk that there is nothing surprising in this, because that was exactly what it was worth managing the funds from the NWF. However, to date, most of this money has been invested in various projects abroad.
The reasons why the Russian authorities chose such a strategy was quite understandable, and moreover, justified. The NWF is a kind of reserves of Russia, which are formed from oil and gas revenues. The budget of Russia is made up at the price of oil at $ 40 per barrel. At the same time, the cost of a barrel in the last 2 years has steadily held above $ 60. Due to this, the size of the NWF has now reached almost 7% of the country's GDP. According to the law, NWF funds up to 7% must be invested in highly liquid and highly profitable assets. These are, as a rule, various infrastructure, production and other projects in developed western countries.
Now that the fund is about to exceed the 7 percent barrier, the question is where to invest the freed money. The International Monetary Fund (IMF) strongly recommends continuing to transfer NWF funds to the West, thereby, one way or another, financing economics hostile countries. However, this time Moscow intends to go the other way and start investing nationwide money in domestic projects.
The reasons why the Russian authorities chose such a strategy was quite understandable, and moreover, justified. The NWF is a kind of reserves of Russia, which are formed from oil and gas revenues. The budget of Russia is made up at the price of oil at $ 40 per barrel. At the same time, the cost of a barrel in the last 2 years has steadily held above $ 60. Due to this, the size of the NWF has now reached almost 7% of the country's GDP. According to the law, NWF funds up to 7% must be invested in highly liquid and highly profitable assets. These are, as a rule, various infrastructure, production and other projects in developed western countries.
Now that the fund is about to exceed the 7 percent barrier, the question is where to invest the freed money. The International Monetary Fund (IMF) strongly recommends continuing to transfer NWF funds to the West, thereby, one way or another, financing economics hostile countries. However, this time Moscow intends to go the other way and start investing nationwide money in domestic projects.
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