Russia begs China for loans as the Kremlin is running out of money for rainy days, analysts say - eviltoast
Reuters: Russia Begs China For Loans
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It agrees to take yuans.

Cross-posted from: https://feddit.de/post/9438700

In almost 2 years of full-scale war, Russia has spent half the money from the National Welfare Fund (NWF), the main source of resources for a rainy day. At the end of 2023, almost 4 trillion rubles were spent from the National Welfare Fund, and now only 5 trillion remains in its so-called liquid part (savings in currency and gold that are easy to spend if necessary).

As analysts explained, Russia has less money for a rainy day, since in the first half of 2023 Russian oil was trading at a discount compared to other brands, the ruble exchange rate was relatively strong, so the required volumes were not received — and currency from the National Welfare Fund was sold. However, in the summer the situation changed: prices rose, the ruble weakened — and the authorities were finally ready to replenish the money.

“However, after Prigozhin’s rebellion, the dollar exchange rate soared to 100 rubles. And additional demand for currency would have accelerated the devaluation even more, so the National Welfare Fund was not replenished,” the analysts said.

At the same time, due to the need to finance an expensive war —“the items “National Defense” and “National Security” increased by 60% compared to 2021”— budget spending exceeded the legal limit by 3 trillion rubles. In addition, the budget deficit turned out to be higher than expected.

    • bungleofjoy@programming.devEnglish
      351·
      9 months ago

      USA can print $, but no one wants russian toilet paper. Therefore they need to beg for change from anyone willing to give

          • Weslee@lemmy.worldEnglish
            7·
            9 months ago

            China has a water problem, the lake is one of the deepest lakes in the world, it is also pretty close to the border.

                • Kornblumenratte@feddit.deEnglish
                  3·
                  8 months ago

                  Well – it complicates things on a political level.

                  Then there is geography – Mongolia avarages at ~ 1500 m above sea level, Lake Baikal lays at ~450 m. The distance from Lake Baikal to the Chinese provinces in need is > 2000 km, mostly arid land.

                  I do not say it’s impossible to use Lake Baikal’s water for China – but I’m sure that it is technically and economically far easier to get the water by desalination from the East China Sea.

                  Building a pipeline from Lake Baikal to Beijing would be total in line with the “man triumphs over nature” attitude that gave birth to projects like the Three Gorges Dam, though.