Russia has increased the reserve fund used for emergency spending by 273.4 billion rubles to US$3.52 billion, ensuring economic stability against the backdrop of Western sanctions on Ukraine.
The government reserve fund is a cash cushion that will be used for unexpected expenses that are not projected in the APBN. Last year, it was used for one-time social payments and to fight the pandemic.
The sanctions, imposed after Russia invaded Ukraine cut Russia off from the global financial system and supply channels. Western countries are also moving closer to a full energy ban from Moscow to strip the Kremlin of its biggest source of revenue.
The government has pledged more than 1 trillion rubles in anti-crisis support for businesses, social payments and families with children, which will take all incoming income this year, so there will be no budget surplus.
"The funds will, among other things, be used to implement measures aimed at ensuring economic stability in relation to external sanctions," the government said in a statement.
The government said the main source of the increase in reserves was 271.6 billion rubles in additional energy revenue received in the first quarter, as oil and gas prices rose in response to the recovery from the impact of Covid-19 and the escalating Russia-Ukraine conflict risked supply disruptions.
Russia supplies about 40% of the EU's natural gas consumption, which the International Energy Agency values at more than US$400 million per day. The European Union gets a third of its oil imports from Russia, about $700 million a day.
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