Russian President Vladimir Putin chairs a meeting with members of the government at the Novo-Ogaryovo state residence outside Moscow, Russia, July 15, 2015. REUTERS/Alexei Druzhinin/RIA Novosti/Kremlin
Your feedback is important to us!
We invite all our readers to share with us their views and comments about this article.
Disclaimer: Comments submitted by third parties on this site are the sole responsibility of the individual(s) whose content is submitted. The Daily Star accepts no responsibility for the content of comment(s), including, without limitation, any error, omission or inaccuracy therein. Please note that your email address will NOT appear on the site.
Alert: If you are facing problems with posting comments, please note that you must verify your email with Disqus prior to posting a comment. follow this link to make sure your account meets the requirements. (http://bit.ly/vDisqus)
Russian agribusiness group EkoNiva recently got a 2 billion-ruble ($32 million) loan to expand its dairy operations in the Black Earth region of Voronezh. There's nothing unusual about that, except that the loan came from the Central Bank of Russia, which has set aside 100 billion rubles to help finance industrial and agricultural projects. So over the past few months, Russia's central bank and government have become lenders of last resort.The government says it's prepared to spend as much as 60 percent of a $75 billion sovereign wealth fund to help provide financing for companies as well as major industrial and infrastructure projects. It's also pressuring the central bank to expand its project finance program. The central bank funnels the aid through a state-owned agricultural bank.One problem is that some banks and companies are poorly managed and deserve to go under, according to Bernie Sucher, a longtime U.S. investor in Russia who serves on the board of Moscow-based UFG Asset Management.Reserves already are down 30 percent from last year's peak, as the central bank has repeatedly stepped into the currency markets to buy rubles.
FOLLOW THIS ARTICLE