politics
Government to write off 48 billion rubles in debt for 8 regions. Bashkortostan was not saved from the forced sale of a part of 'Bashneft' by such a benefit
The Russian government will write off more than 48 billion rubles in debt on budget loans for 8 regions. This was announced on June 25 at a cabinet meeting by Prime Minister Mikhail Mishustin.
TL;DR
- Russia will write off over 48 billion rubles in budget loan debt for eight regions: Volgograd, Moscow, Nizhny Novgorod, Novgorod, Novosibirsk, Ryazan, Chelyabinsk, and Udmurtia.
- The freed-up funds are designated for social facilities, housing, and road construction and repair.
- Regions can retain these funds if they allocate them to specific expenditures like infrastructure, utilities, public transport, and resettlement from dilapidated housing.
- Bashkortostan received a similar benefit last year, but later sold a blocking stake in 'Bashneft' to raise 14.8 billion rubles.
- The sale of 'Bashneft' shares may have reduced Bashkortostan's ownership stake to a level insufficient to block certain shareholder decisions.