The Russian government is preparing to offer government bonds to investors for 40 billion rubles (about 16 billion kroner) this month. This was announced by the Russian Finance Ministry on Monday. Russian Deputy Finance Minister Timur Maksimov announced last week that the government plans to borrow money from the domestic bond market in September after a seven-month hiatus in the issuance of government bonds.




Moscow

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(Illustration) | Photo: Vlad Karkov | Source: Reuters

The ministry said the bond auctions will be held on September 14, 21 and 28. The Russian government suspended the issuance of OFZ government bonds, which it uses to cover the budget deficit, in February of this year, a few weeks before the start of the invasion of Ukraine. For this reason, Russia has become the target of widespread sanctions by Western countries.

President Vladimir Putin last week expected Russia to report a budget surplus this year, which is supposed to amount to about half a trillion rubles (about 200 billion kroner).

In April, Moscow still assumed that it would record a deficit this year, which was estimated at 1.6 trillion rubles. Reuters also reported that it would use money from the state fund to finance it.


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Maximov warned last week that the Finance Ministry’s future borrowing plans would depend on a new form of budgetary rules that the Russian government could soon introduce.

These rules determine how much state revenue from oil and gas exports is used to cover daily government spending and how much money goes into the state fund.

Existing rules were suspended earlier this year, and Putin ordered the government to draft a new version that would better fit Russia’s new financial situation.

CTK

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