Page 68 - RusRPTFeb19

“Officials have talked a big game on structural readjustment away from hydrocarbons. Indeed, hydrocarbon revenue as a percentage of the total has fallen in recent years. But that's not due to changes in the economy so much as energy prices simply being lower: extractive sectors contributed less to the budget because they made less money,” Bear Market Brief said in a note.
6.1.3 Budget dynamics - govt funding plans
Russia may issue the usual $4bn in Eurobonds this year but it will mainly rely on the local treasury bills, or OFZs. The 2019 budget has RUB2.5 trillion worth of OFZ issues, which is double the amount of RUB1.1 trillion in the previous budget.
Saudi Arabia’s investments in Russian projects total $2.5bn as of now,
Chief Executive Officer of Russian Direct Investment Fund Kirill Dmitriev said at the World Economic Forum in Davos, Tass reported on Janaury 23. "(Saudi Arabia) has invested a total of $2.5bn," he said when asked about the current amount of investments in Russian projects. "Megadeals, investment in LNG industry and petrochemical sector are also under discussion, that being a remarkable example of cooperation," he said. Dmitriev also noted the importance of attracting foreign investment for implementation of the national projects’ program. "In many cases, additional investments beyond the funds allocated by the government make the work at national projects more transparent," he stressed. In December, Russian President Vladimir Putin and Saudi Crown Prince Mohammad bin Salman had their first meeting at the G20 summit in Argentina. During the meeting, they signed a declaration on strategic partnership covering mutual investments in the agriculture sector, encouraging mutual investments in join agriculture and water projects, as well as mutual support of investment funds in the field of joint production of high-tech products. Dmitriev said at the G20 summit that Moscow expects the amount of Saudi Arabia’s investment in the projects to go up.
6.1.4 Budget dynamics - regions
The Ministry of Finance has tightened control over spending and debt in
68 RUSSIA Country Report February 2019 www.intellinews.com