Moscow Might Run Out Of Money By Next Year, Says Russian Oligarch

During an economic conference in Siberia, Russian oligarch Oleg Deripaska expressed concerns that Russia may face a financial crisis next year unless it secures investments from friendly nations. CNN reported that Deripaska said, “There will be no money already next year, we need foreign investors.”

He also noted that the Russian government has started to put pressure on businesses as funds run low. Deripaska attributed this financial pressure to Western sanctions and urged Russia to seek investments from other countries with significant resources.

The billionaire also suggested that Russia should consider its Asian past for the next 25 years since the country is currently suffering from “serious” Western sanctions pressure, as reported by The Guardian.

Notably, Mr Deripaska’s remarks come after Russian President Vladimir Putin praised the country’s economy for its resilience in the face of unprecedented Russian sanctions imposed the previous year. According to a preliminary estimate from the government, Russia’s economic output shrank only 2.1% last year. This contraction was more limited than many economists initially predicted.

CNN reports that following Russia’s invasion of Ukraine in February 2022, Western nations have imposed over 11,300 sanctions and frozen approximately $300 billion of Russia’s foreign reserves in an attempt to deprive the country of resources for its aggression.

Nevertheless, China has provided a lifeline for the Kremlin’s economy by purchasing Russian energy, substituting Western suppliers of machinery and base metals with Russian ones, and presenting an alternative to the US dollar.

Still, Moscow has a long way to go before it can recover the lost export money and other sources of income due to the sanctions.