Russian oligarch Oleg Deripaska warned that Russia could run out of money as soon as next year unless it receives investment from “friendly” countries. Deripaska made the comments on Thursday at the Krasnoyarsk Economic Forum in Siberia. The observation was among the most outspoken by a prominent business leader as the government looks to raise budget revenues after ending last year with a record fiscal deficit and the budget still deep in the red to start 2023.
Deripaska, who is thought to be Russian President Vladimir Putin’s favorite industrialist, said building “state capitalism is not an option” and warned of “serious” pressure from sanctions. He added that Russia needs to make sure it is attractive to foreign investors by ensuring a safe business climate with more economic freedoms and competition.
The billionaire founder of United Co, Rusal International PJSC, the biggest aluminum producer outside China, said funds are now running low and “that’s why they’ve already begun to shake us down.”
The Russian government is already planning to raise additional budget revenue with proposed changes to how they tax oil companies and may wrest more money from other commodity producers by means of a one-time levy.
Last year, Russia experienced a sudden rise in capital investment; however, the outlook has become more bleak, particularly with large military expenditures putting a strain on public funds. Despite sanctions and other impediments to energy exports diminishing their revenues, the International Monetary Fund believes that the economy may still experience slight growth this year.
Deripaska stated that countries that possess “significant resources” may become potential collaborators with Russia. He added that the government needs to make sure Russia is attractive for such investors.
In conclusion, Deripaska’s warnings show a dire economic future for Russia unless it receives help from foreign investors. With crippling sanctions, a deep fiscal deficit and massive military spending, the outlook is grim. However, if the government can ensure a safe business climate and attract “friendly” countries, it could be able to turn the situation around.
0. “Billionaire Oleg Deripaska Says Russia Could Find Its Coffers Empty Next Year and Needs … – Latest Tweet” LatestLY, 2 Mar. 2023, https://www.latestly.com/socially/business/billionaire-oleg-deripaska-says-russia-could-find-its-coffers-empty-next-year-and-needs-latest-tweet-by-bloomberg-4902392.html
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