Putin wants to use Russians’ pension funds to rescue the economy, which has stalled because of the war
Kyiv • UNN
The Russian Federation plans to use pension savings to finance businesses through special funds. Russia’s economy has almost stopped growing.
The Russian authorities plan to make more active use of citizens’ pension savings to finance businesses and stimulate an economy that has practically stopped growing in the fifth year of the war against Ukraine. Vladimir Putin supported the initiative, The Moscow Times reports, writes UNN.
Details
During a meeting with business leaders, Putin approved a proposal to create special “growth funds” that would attract long-term investments, including pension funds. At the same time, he stressed that citizens’ savings must be protected from possible losses.
According to the Central Bank of the Russian Federation, Russians’ pension savings amount to approximately 10 trillion rubles. Currently, non-state pension funds are permitted to invest up to 10% of their assets in high-risk instruments, and from January 1, this limit will increase to 15%.
The Russian economy is rapidly losing its growth momentum
According to the official forecast, the Russian economy will grow by only 0.6% in 2026, while in subsequent years the figure may not exceed 1%. At the same time, business investment fell by 9.9% in the first half of the year.
Due to high interest rates, falling demand, and an outflow of foreign capital, Russian companies are cutting their investment programs. The authorities are seeking new sources of financing, as traditional resources for stimulating the economy are becoming insufficient.
Previously, pension funds mainly invested their money in government bonds, but the returns on such investments after fees did not cover inflation. Now the Kremlin is considering pension savings as an additional source of capital to support the economy.