Russia will spend up to 1 trillion rubles (US$ 10,018 million or 8,906 million euros) from the National Welfare Fund, which is fed by oil revenues and is a kind of piggy bank for bad times, to buy shares of Russian companies affected by Western sanctions.
The document was signed by Prime Minister Mikhail Mishustin last Saturday, the official Russian agency TASS said.
The head of government orders the Russian Ministry of Finance “to carry out in 2022 the acquisition of shares of Russian issuers at the expense of the National Welfare Fund in the amount of up to 1 trillion rubles under the determined conditions” by the institution.
The Moscow Stock Exchange was closed yesterday and today due to the impact of Western sanctions over Russia’s invasion of Ukraine, so the market’s reaction is still unknown.
Thus, Russia avoided for at least two days a major blow like the one suffered by the MOEX index last Thursday in response to Russia’s announcement that it was launching a military offensive against Ukraine and the first sanctions against the financial market and sovereign debt.
The stock market then plummeted 45% and the main values fell more than 58%.
Source: Gestion
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