CNN: Russia is seriously running out of cash
Russia is bleeding cash at an alarming rate.
After almost two years in recession, the country's rainy day fund has shrunk to just $32.2 billion this month, according to the Russian Finance Ministry. It was $91.7 billion in September 2014, just before oil prices started to collapse.
And it's getting worse. Analysts expect the fund will shrink to just $15 billion by the end of this year and dry up completely soon after that.
"At the current rate, the fund would be depleted in mid-2017, perhaps a few months later," Ondrej Schneider, chief economist at the Institute of International Finance, wrote in a note this week.
The government's reserve fund is designed to cover shortfalls in the national budget at times of low oil and gas revenues.
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WNU Editor: It is not a problem now .... nor will it be a problem next year .... but after that (i.e. in 2018) .... I am telling family and friends in Russia to expect higher taxes. There is also the route of Russia borrowing money on the international markets .... but on this issue I have to give credit to Putin .... he hates debt.
On a side note .... the above Al Jazeera video is a story on how small businesses are booming in Russia despite the economic woes. I can vouch its authenticity. On my last trip there .... I was surprised to see how vibrant and important small business have become in my mother's home town 50 kilometres west of Moscow .... there were everywhere and people were busy.