Russia’s net public debt again exceeded liquid reserves and reached 1.55 trillion rubles as of July 1. This was announced on Thursday, August 13, by RBC with reference to statistics from the Central Bank and the Ministry of Finance of the Russian Federation.
As the publication clarifies, net debt implies that government assets do not cover the amount owed.
According to the newspaper, the government’s debt as of July 1 amounted to 14.77 trillion rubles, and liquid reserves – 13.22 trillion rubles.
RBC notes that this situation has developed due to the purchase by the government in April 2020 of a controlling stake in Sberbank from the Central Bank of the Russian Federation for 2.14 trillion rubles from the funds of the National Welfare Fund (NWF). Other factors were the crisis caused by the coronavirus pandemic and the fall in oil prices.
At the same time, the publication emphasizes that the appearance of net debt does not pose a significant threat to the economic system, but is one of the results of the economic crisis.
Earlier in July, Russian Prime Minister Mikhail Mishustin, speaking in the State Duma with a report on the work of the government, said that Russia had good prerequisites for an economic breakthrough by early 2020, but the situation was complicated by a pandemic and a collapse in oil prices.