Russia empties half the crisis checkout – Swedish newspaper Svenska Dagbladet

Russia empties half the crisis checkout – Swedish newspaper Svenska Dagbladet

Ukraine-related sanctions and halved crude prices is behind the crisis situation.

The ruble, which lost 40 percent against the dollar in six months, squeezed by the new austere budget figures. They come just a week after Moody’s lowered Russia’s credit rating and warned of further cuts, which pushes up the country’s financing costs.

According to Russia’s Deputy Finance Minister Tatiana Nesterenko, the government has asked Russia’s parliament to approve a withdrawal of up to 3 200 billion rubles (about 440 billion) out of the crisis fund. That’s more than half of the assets of just over 700 billion.

According to Nesterenko, this year’s budget deficit swelled to 3.7 percent of Russia’s GDP, up from a previous estimate of 0.6 percent.

A gigantic loss of revenue due to the fall in oil prices and sanctions against Russia, which were established after the annexation of the Crimea, located behind the development.

The Russian government revenue is expected to fall to 12 500 billion rubles a year, against a previous estimate of 15 100 billion rubles. Austerity presses while spending from 15,500 billion to 15,200 billion rubles.