Page 12 - bne IntelliNews monthly country report Russia February 2024

pays for the loans of the chosen few," and warned that the more the government subsidizes loans, the longer the Central Bank will have to maintain a high interest rate.
Finance Minister Anton Siluanov elegantly signalled his support for Nabiullina and officially announced the government's proposal to increase the down payment threshold for subsidized mortgages to 30%.
However, this measure does not solve the problem of unequal access. Now, lucky individuals with subsidized mortgages will be subsidized through taxes not only by those who are ineligible due to family composition or occupation but also by those theoretically eligible but lacking the funds for a down payment.
The Kremlin remains keen on the subsidized mortgage program as it is an indirect means of stimulating the economy; money going into construction is a major growth driver providing work for many lower class citizens and also bolstering the banking sector which benefits from the increased loans volumes. Mortgage lending is booming. (chart)
2.3 Putin travels to Middle East
President Putin made a brief trip to the United Arab Emirates (UAE) and Saudi Arabia on in the first week of December. Ahead of the visit, the Kremlin announced that he would meet with the countries’ leaders to discuss de-escalation in Gaza as well as conflicts in Syria, Yemen, and Sudan, BMB Russia reports.
Additionally, the oil market is “always on the agenda,” Kremlin spokesperson Dmitry Peskov said. Western sanctions have limited Russia’s oil profits, forcing it to look elsewhere to fund its war effort in Ukraine. Over the last year, Russia has drastically increased crude oil exports to both Saudi Arabia and the UAE, making them key trading partners.
Putin received a warm welcome when he arrived in Abu Dhabi, including an air show that painted the sky with the colours of the Russian flag. In his meeting with UAE President Sheikh Mohamed bin Zayed Al Nahyan, he praised the countries’ trade relationship, calling the UAE “Russia’s main trading partner in the Arab world.”
Bilateral trade between Russia and the UAE reached a record-breaking $9bn last year. The COP28 UN climate talks are also currently taking place in the UAE, but Putin did not attend any COP28 events.
He travelled to Saudi Arabia later that day to meet with its de facto leader, Crown Prince Mohammed bin Salman. The pair had a brief televised chat in which they complimented their countries’ bilateral cooperation. “Nothing can prevent the development of our friendly relations,” Putin said.
Putin has travelled abroad only a few times since March, when the International Criminal Court (ICC) issued a warrant for his arrest. He is
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