Page 66 - RusRPTApr20

Welfare Fund, as well as additional accrued oil tax revenues waiting to be transferred into the Fund. These assets altogether amount to over 9% of GDP.
6.1.2 Budget dynamics - specific issues...
The Russian government will write off about RUB375bn of debt of the defence companies and will restructure the same amount for 15 years at 3% annually, Deputy Prime Minister Yury Borisov said at a meeting with the Industry and Trade Ministry of the Tatarstan republic Thursday. “This is a very serious measure that will unburden (the defence companies) from huge payments to the bankers, will release funds for their development,” Borisov said. Borisov said in July 2019 that the combined loan portfolio of the sector exceeded 2 trillion rubles and companies were unable to repay loans.
Russia’s budget will be hurt by stalling in demand for Gazprom’s gas.
Gazprom’s export revenues barely exceeded $3bn in January, dropping 41.1% from the same month in 2019. Per federal customs statistics, Gazprom’s delivery volumes declined 11% in January. Gazprom pays a 30% duty on its exports, which goes directly into the federal budget. Whereas last January the state received $1.5bn from Gazprom export duties, this January it received just $900mn. The federal budget expects to earn 700bn rubles ($9.4bn), or 0.6% GDP, from Gazprom duties this year. January’s financials, which should be among the best of the year, make this expectation appear unrealistic.
66 RUSSIA Country Report April 2020 www.intellinews.com