Russia could run out of money as soon as next year unless it receives an infusion of cash from “friendly” countries that will help it overcome crippling sanctions from the Kremlin’s invasion of Ukraine, according to oligarch Oleg Deripaska.
“There will be no money already next year,” Deripaska, who is thought to be Russian President Vladimir Putin’s favorite industrialist, said at an economic conference in Siberia on Thursday, Bloomberg News reported.
“We will need foreign investors.”
Deripaska, who made his fortune in the aluminum trade, complained to his fellow tycoons that the Moscow government has “already begun to shake us down” because the Russian treasury is low.
He said that building “state capitalism is not an option” and warned of “serious” pressure from sanctions.
“Russia should keep developing the market economy,” he said.
“A foreign investor will look at how a Russian investor makes money, what conditions exist.”
Deripaska, 52, was among several alleged Putin cronies who were sanctioned by the US, UK and EU following the invasion of Ukraine. The mogul said Russia needs to pivot in its trade strategy in light of geopolitical circumstances.
“We thought we were a European country,” said Deripaska, who was indicted by the Justice Department last September for allegedly concocting a scheme for his girlfriend to give birth to their child on American soil.
“Now, for the next 25 years, we will think more about our Asian past.”
The West’s shunning of Russia has forced the country to turn to rival China to keep its economy afloat. Beijing has officially remained neutral during the war in Ukraine.
However, Deputy Secretary of State Wendy Sherman said at an event at the Brookings Institution in Washington, DC, last month that the US has “growing concern” about the Chinese-Russian partnership, as The Post reported.
“My assessment is the PRC [People’s Republic of China] is trying to both increase its standing in the international community by saying that it’s willing to mediate and help bring this horrifying invasion to an end. And at the same time, they are committed to their no-limits partnership with Russia,” Sherman said.
“And we have, certainly, concern and growing concern about that partnership and the PRC’s support for this invasion,” she added.
Russia’s treasury has doubled the share of yuan, the Chinese currency, to 60% in its sovereign wealth fund.
The Kremlin has been selling yuan in hopes of making up for its burgeoning budget deficit.
The Russian ruble recently fell to its weakest level in 10 months — shedding 20% of its value since the start of December.
As of Thursday, $1 equaled roughly 75 Russian rubles — much improved from the exchange rate of 140 rubles per each US dollar that the currency was trading at when sanctions were first imposed.
The decline of the ruble is driven by dwindling energy revenues — the result of Europe’s decision to wean itself off of imports of Russian oil and natural gas.
[Written in collaboration with other media outlets with information from the following sources]
