Bloomberg: Russia plans to earmark $13.5 billion to boost economy

Russian President Vladimir Putin’s government plans to dramatically ramp up stimulus measures to prop up an economy that is lurching toward recession, Bloomberg says.

The government will roll out about 1 trillion rubles ($13.5 billion) of new spending, according to two people familiar with the plans, who asked not to be named because discussions are ongoing.

Some of the money will go toward subsidizing salaries of workers idled by isolation measures to fight the coronavirus, the people said.

The stimulus will be funded by increased borrowing, not Russia’s $165 billion rainy-day fund, one of the people said.

A spokesperson for the government did not respond to a request for comment.

The plan is the clearest sign yet that Putin is willing to join other world leaders in ramping up spending to stave off a deep recession. Concern that oil prices will stay low for a long time after a nearly 50% drop this year has so far made the Kremlin cautious about releasing funds, despite growing pressure from businesses and economists.