Debt Paradox Means Russia Borrows More Even as Oil Prices Rally - Bloomberg:
"Oil prices near the highest level in over three years are driving the world’s biggest energy exporter deeper into debt.
While Russia stands to reap a windfall from crude’s recent rally, with the budget now on track for its first surplus since 2011, a program of foreign-currency purchases by the Finance Ministry means that it needs more rubles to conduct the operations when the exchange rate appreciates thanks to higher oil prices.
Instead of quenching the government’s financing needs, the result is that borrowing in rubles will actually rise close to last year’s record level to absorb the extra dollars in line with the so-called budget rule."
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