Wednesday, November 30, 2022

UK defense ministry: Russia's record debt issuance indicates expectation of fiscal instability

by The Kyiv Independent news deskNovember 19, 2022 10:51 am

Russia conducted the largest ever debt issuance in a single day, raising $13.6 billion in RUB equivalent on 16 Nov., the U.K. Defense Ministry pointed out in its intelligence update on Nov. 19.

“Russia’s declared ‘national defense’ spending for 2023 is planned at approximately RUB 5 trillion ($84 billion), a more than 40% increase on the preliminary 2023 budget announced in 2021,” reads the report. Russian defense spending has increased significantly since its full-scale invasion of Ukraine started in February. 

"Debt issuance is expensive during periods of uncertainty," the UK defense ministry said. 

The size of this auction highly likely indicates that Russia’s Finance Ministry “perceives current conditions as relatively favorable but is anticipating an increasingly uncertain fiscal environment over the next year,” the ministry added.

Russia's Central Bank said in August that the country’s budget surplus has tripled compared to the same period in 2021 due to high energy prices and a sharp decline in the country's imports due to Western sanctions. 

The Kyiv Independent news desk
The Kyiv Independent news desk

We are here to make sure our readers get quick, essential updates about the events in Ukraine.

Give the gift of democracy
this Giving Tuesday
Become a member of the Kyiv Independent. For as little as $5 per month, you can help ensure the Kyiv Independent continues to produce quality journalism in 2023.