Putin is looking for money for the war: The Kremlin has turned to the oligarchs
27 March 07:07
During a closed-door meeting with representatives of big business, Russian dictator Vladimir Putin discussed the issue of further financing for the war against Ukraine and the possibility of attracting funds from the private sector. This refers to so-called “voluntary contributions” to the Russian Federation’s budget.
This was reported by the Russian publication The Bell, citing sources familiar with the meeting, according to "Komersant Ukrainian"
What is known about Putin’s meeting with business leaders
According to journalists, the meeting took place behind closed doors. During the meeting, they discussed Russia’s economic situation and resources for continuing the war.
According to sources, Putin made it clear that Russia does not plan to scale back military operations.
According to The Bell, he stated his intention to continue military operations and achieve the goals set by the Kremlin.
How business could be drawn into financing the war
According to the publication, one option is to attract funds from large businesses through special financial instruments.
In particular, there are reports of a plan to issue federal government bonds (OFZs) that Russian companies could purchase.
According to sources, this initiative was allegedly proposed by Rosneft CEO Igor Sechin.
In essence, this is a mechanism that allows the state to obtain additional funding through debt instruments.
Did the business community agree?
According to The Bell, some of the meeting participants reportedly agreed to support this initiative.
In particular, it is reported that Russian businessman Suleiman Kerimov may have pledged a significant amount of funds, although there is no official confirmation of this information.
Other entrepreneurs, according to sources, also expressed support for the idea, though without making specific commitments.
Why is Russia seeking additional funds
Experts note that the Russian economy is under significant pressure from sanctions and military spending.
Among the main reasons for seeking additional funding are:
- rising defense spending;
- sanctions;
- declining energy revenues;
- the need to support the military-industrial complex.
At the same time, Russia is trying to avoid a sharp increase in the tax burden on the population, so it may raise funds through the business sector.
What Putin said publicly
During the public portion of the meeting, Putin repeated the Kremlin’s traditional narratives regarding the events of 2014, stating that Russia allegedly acted to “protect the population.”
In Ukraine and Western countries, such statements are viewed as part of Russian propaganda and an attempt to justify aggression.
What is known about the negotiations between Russia and Ukraine
Earlier, Kremlin spokesperson Dmitry Peskov stated that negotiations between Russia and Ukraine have shown no progress on territorial issues.
At the same time, according to him, Moscow formally declares its readiness for further contacts.
What does this mean
Experts believe that involving the business sector in financing the war may indicate long-term planning of Russia’s military expenditures.
It could also signal:
- a need for additional resources;
- structural budget problems;
- an increased role for big business in financing government spending.
