In response to oligarch Oleg Deripaska, Russia could run out of money as soon as next year if it doesn’t receive an injection of cash from “friendly” countries to assist it overcome the crippling sanctions resulting from the Kremlin’s invasion of Ukraine.
“There will likely be no money next year,” Deripaska, considered Russian President Vladimir Putin’s favorite industrialist, said at an economic conference in Siberia on Thursday. reported Bloomberg News.
“We are going to need foreign investors”
Deripaska, who made his fortune trading aluminum, complained to fellow magnates that the Moscow government “has already begun to shake us” since the Russian treasury is low.
He said constructing “state capitalism isn’t an option” and warned of “serious” pressure from sanctions.
“Russia should proceed to develop a market economy,” he said.
“The foreign investor will take a look at how the Russian investor earns, what conditions exist.”
Deripaska, 52, was one of several alleged cronies of Putin sanctioned by the US, UK and EU after the invasion of Ukraine. The tycoon said Russia needs to alter its trade strategy in light of geopolitical circumstances.
“We thought we were a European country,” said Deripaska, who was indicted by the Department of Justice last September for allegedly concocting a plan to have his girlfriend give birth on American soil.
“Now, for the next 25 years, we are going to think more about our Asian past.”
The West’s avoidance of Russia has forced the country to show to China to maintain its economy afloat. Beijing officially remained neutral through the war in Ukraine.
Nevertheless, Deputy Secretary of State Wendy Sherman said at a gathering on the Brookings Institution in Washington last month that the USA “growing concern” in regards to the Sino-Russian partnership, as reported by The Post.
“My rating is PRC [People’s Republic of China] seeks to each increase its standing within the international community by declaring its readiness to mediate and help end this horrific invasion. At the identical time, they’re committed to an infinite partnership with Russia,” Sherman said.
“And we’re definitely concerned and increasingly concerned about this partnership and the PRC’s support for this invasion,” she added.
The Russian treasury has doubled the share of the yuan, China’s currency, to 60% in its sovereign wealth fund.
The Kremlin is selling the yuan within the hope of making up for the growing budget deficit.
The Russian ruble recently fell to its weakest level in 10 months – losing 20% of its value since early December.
On Thursday, $1 was about 75 Russian rubles – much better than the exchange rate of 140 rubles for each US dollar at which the currency was traded when the sanctions were first imposed.
The autumn within the ruble’s value is as a consequence of declining energy revenues, the result of Europe’s decision to wean itself from importing Russian oil and natural gas.