Russia may run out of money in 2024, we need foreign investors, claims oligarch

By Team Newsable | First Published Mar 4, 2023, 6:41 PM IST

Russian billionaire Oleg Deripaska told the Krasnoyarsk Economic Forum on March 3 that Russia could run out of money as early as next year without new foreign investment from "friendly countries" and warned government policies are hurting the financial environment.

Russia's treasury may run dry within a year, necessitating foreign investment, said outspoken Russian oligarch Oleg Deripaska at an economic conference in Siberia. The remarks came after Russian President Vladimir Putin praised the country's economy for its resilience in the face of unprecedented Western sanctions imposed the previous year.

In light of the Russia-Ukraine conflict, he reportedly stated, "There will be no money already next year, we need foreign investment," according to remarks obtained by the Russian state-owned news agency TASS. Early in the conflict in 2022, the Russian billionaire called for an end to Moscow's war in Ukraine.

Tap to resize

Latest Videos

Tap to resize

According to Deripaska, foreign financiers, particularly those from "favoured" nations, also play a significant role. He was cited as stating that the success of foreign investments will rely on Russia's capacity to create favourable circumstances and attractive markets.

Also Read | Australian PM Albanese in India: Of trade, investments and cricket diplomacy

In an attempt to deny the Kremlin resources for its aggression, Western countries have applied over 11,300 sanctions since the invasion in February 2022 and frozen about $300 billion of Russia's foreign assets.

Russia’s economic output shrank 2.1% last year, according to a preliminary estimate from the government. The contraction was more limited than many economists initially predicted.

However, China has given the Russian government a financial lifeline by purchasing its energy, taking the place of Western suppliers of products like machinery and base metals. Yet, Moscow has a long way to go before it can recover the lost export money and other sources of income due to the sanctions.

Also Read | Andrey Botikov, scientist behind Russia's Sputnik V Covid vaccine, strangled to death with belt; 1 arrested

For more reliable and latest news