According to this morning’s Vedomosti, Russia will create a special state
corporation to manage its financial assets. The latter could include the two
components of the former Stabilization Fund (the National Wealth Fund and
Reserve Fund), pension savings and state debt. Therefore, the amount of
assets under management by the new corporation could be as high as R7 trln
($220 bln).
We believe the establishment of this new entity will provide more flexibility in
managing state assets. It will likely give the government more tools to support
the economy in the current difficult environment. However, given the expected
budget deficit for 2009 of around 5% of GDP, the creation of the new
corporation may also mean that state resources to finance growth after 2010
will be very limited.
Alfa Bank morning briefing 13 January, 2009
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