Page 94 - RusRPTFeb19

anticipate a strong jump in prices when the VAT hike kicks in next year. By issuing inflation-pegged OFZs every month, MinFin is trying to cover budget expenses by catering to investors’ worries.
● The Ministry of Finance began offering inflation-linked OFZs in 2015 with two 150-billion-ruble issuances maturing in 2023 and 2028.
● The 5Y bond was successfully placed in full, but 76.9 billion rubles ($1.2 billion) of the 10Y remain to be purchased.
● MinFin last issued an inflation-linked bond in July for 15 billion rubles ($226 million).
● In November, inflation stood at 3.8% in annual terms. According to the Central Bank, inflation will exceed 5% in 1Q19 and will average 5- 5.5% next year.
94 RUSSIA Country Report February 2019 www.intellinews.com