It is the only source that can provide a chance for economic breakthrough
Published:
21 March 2005 y., Monday
Money from Russia’s Stabilisation Fund is expected to be invested abroad in dollar-nominated securities, with minimum investment risks and minimum profitability at 2-4%. These funds have until now been kept in Central Bank accounts. This means that a great deal of money will soon appear on the financial markets. On February 1, 2005, the Fund totaled 647.2 billion roubles ($23.1 billion), which mostly came from taxes on oil sales with prices exceeding $20 per barrel and export duties from oil companies.
The crucial question is how this money should be used. Money can only be taken out of the Fund when it has more than 500 billion roubles. Therefore, more than a fifth of its resources can already be used. This is a key issue for Russia’s economy, as the positive overseas market situation in recent years has been almost exclusively responsible for its growth.
However, experts are not tired of repeating that the potential of the resource-oriented Russian economy has been virtually exhausted. The mechanism whereby "we produce oil, sell it and enjoy the benefits" is becoming increasingly less effective. The country is now at a stage when it must introduce an industrial policy. However, any policy only makes sense when there is money to implement it.
Russia’s stock market and banking system do not provide the necessary financing for the real sector of the economy. Direct foreign investment in Russia remains at a very low level, while foreign investment in general is concentrated on either the import of equipment or foreign borrowings. The country obviously needs sources for further growth. The Stabilisation Fund is virtually the only potential source today and a genuine war is being waged for its funds.
Šaltinis:
financialexpress.com
Copying, publishing, announcing any information from the News.lt portal without written permission of News.lt editorial office is prohibited.
The most popular articles
President of the Republic of Lithuania Dalia Grybauskaitė welcomed the decision taken by the U.S. Government to transport shipments for the international mission in Afghanistan by transit via the Klaipėda Seaport.
more »
EU Solidarity Fund aid to repair storm damage in France and Portugal was approved by the Budgets Committee on Thursday.
more »
The European Investment Bank and the Government of Samoa formally agreed to support the rehabilitation and upgrade of independent water schemes in the Pacific island state under a EUR 250,000 technical assistance programme.
more »
Steps to overhaul the European Union's flagship single market were discussed on Tuesday (9 November) by MEPs and interested parties.
more »
Strategy to secure a sustainable EU energy supply and support economic growth over the next decade.
more »
EU funding to help 850 former workers in the aircraft maintenance industry around Dublin find new jobs was approved by the European Parliament on Thursday.
more »
Saffron farmers in western Afghanistan hope to oust opium as a harvest crop.
more »
The European Commission has approved an application from Poland for assistance from the European Globalisation adjustment Fund (EGF).
more »
New plans for EU industry to create jobs while keeping manufacturing in Europe.
more »
The European Commission has approved two applications from Spain for assistance from the EU Globalisation Adjustment Fund (EGF).
more »