Russia filling up rainy-day fund

Russia has increased its reserve fund used for emergency spending by 551.4 billion rubles ($9.5 billion), the government said on Thursday.

“The funds will be used in part to implement measures aimed at ensuring the stability of economic development in the conditions of external constraints,” the government said, referring to Western sanctions placed on Russia by the US, the EU, and other nations in response to Moscow’s military operation in Ukraine.

The government’s reserve fund can be used for unforeseen spending not provided for in the state budget. Money from the fund is allocated to solve socially significant problems. Last year, the funds were used to tackle the impact of the Covid-19 pandemic and for social payments.

The boost in reserves came from extra profits generated by oil and gas exports, which are adding hundreds of millions of dollars a day to the budget in spite of Western sanctions.

The government added 791.6 billion rubles (over $13 billion) to the fund in May.

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