According to reports from Kontakty.UA, The Telegraph has noted that the cost of borrowing has significantly increased, with interest rates at 21% putting pressure on companies.
The rise in interest rates has faced criticism from Igor Sechin, the head of “Rosneft,” and billionaire aluminum magnate Oleg Deripaska. The so-called Russian welfare fund is depleting.
At the beginning of 2022, the liquid portion of assets was about $100 billion, but it has now dwindled to approximately $38 billion. At the end of last year, the value of the Russian National Welfare Fund was around $117 billion, or about 6.6% of GDP. However, the liquid portion has shrunk to $38 billion after a significant amount was used to cover everyday expenses.
According to KSE, the liquid assets of the fund, primarily held in Chinese yuan and gold, have decreased by 60% since the start of the war.
“Prices in Russia are rising at 9.5% per year. While this is far from the peak of 17.8% observed immediately after the invasion three years ago, the factors driving prices today are much more concerning,” the journalists believe.