Russia needs huge financial resources for military operation, finance minister says

Tanks of pro-Russian troops drive alongside a road throughout Ukraine-Russia battle within the city of Popasna within the Luhansk Area, Ukraine Might 26, 2022. REUTERS/Alexander Ermochenko

Might 27 (Reuters) – Russia wants large monetary assets for its navy operation in Ukraine, Finance Minister Anton Siluanov mentioned on Friday, placing the quantity of funds stimulus for the financial system at 8 trillion roubles ($120 billion).

Russia despatched tens of hundreds of troops into Ukraine on Feb. 24, which prompted the West to impose sanctions in opposition to Moscow which have already fanned inflation to close 18% and pushed the nation to the brink of recession.

“Cash, large assets are wanted for the particular operation,” Siluanov mentioned in a lecture at a Moscow monetary college.

President Vladimir Putin this week ordered 10% rises in pensions and the minimal wage to cushion Russians from inflation, however denied the financial issues had been all linked to what Russia calls “a particular navy operation” in Ukraine. learn extra

The measures would value the federal funds round 600 billion roubles this yr and about 1 trillion roubles in 2023, Siluanov mentioned earlier this week.

On Friday, Siluanov additionally defended capital controls and asset freezes for overseas buyers from “unfriendly” international locations that Moscow imposed in response to western sanctions.

“We are going to maintain the investments that had been made by foreigners from unfriendly international locations in Russia in the identical approach as they are going to maintain our gold and foreign exchange reserves,” Siluanov mentioned, referring to the western transfer to freeze round $300 billion value of Russia’s worldwide reserves it collected over years.

Siluanov mentioned restrictions on capital strikes for overseas buyers might stay in place till both sanctions are lifted or reserves are unfrozen.

($1 = 66.5790 roubles)

Reporting by Reuters; Enhancing by Angus MacSwan

Our Requirements: The Thomson Reuters Belief Rules.