Kremlin expects "large voluntary contributions" from oligarchs – FT

The Kremlin is seeking to improve Russia's financial situation through voluntary contributions from oligarchs, and some have already agreed, viewing it as a "debt for the 1990s", when they built their businesses.

Source: Financial Times

Details: The outlet writes that Kremlin leader Vladimir Putin has asked Russian oligarchs to make voluntary contributions to the budget to stabilise finances amid the war against Ukraine. FT cites sources familiar with the conversation.

Sources stated in approached a large group of businessmen with a request to support the budget. The Russian leader made it clear that he intends to continue the war until the remaining parts of Donbas not currently controlled by Russia are seized.

Two businessmen who attended the meeting have already expressed their readiness to contribute. In particular, Suleiman Kerimov is said to have agreed to provide around 100 billion roubles (approx. US$1.2 billion), while businessman Oleg Deripaska also backed the initiative.

The Kremlin itself acknowledged that the meeting took place and that contributions were discussed but insisted that Putin did not ask for anything, claiming it was an initiative of big business.

Responding to a Reuters journalist, Kremlin spokesman Dmitry Peskov said that one of the participants in the meeting "did indeed say that he considered it necessary to allocate a certain large, very large sum of money for the state and that this was his family's decision."

"It is not true that Putin made such a request," the Kremlin spokesman said. He also stressed that the discussion was not about financing the war.

Quote from Peskov: "One of the participants argued that the vast majority of those at the meeting started their businesses in the 1990s, and, of course, this beginning was in one way or another linked to the state. And therefore many now simply consider it their duty to make such contributions."

Details: According to The Bell, the idea to "shake down the business sector at a difficult time for the country" came from Rosneft head Igor Sechin, who allegedly outlined it in a letter to Putin. Peskov denied this.

He refused to name "one of the participants in the meeting", citing the fact that the meeting was closed.

According to the outlet's sources, billionaire Suleiman Kerimov pledged to contribute 100 billion roubles, and the idea was supported by "at least one other major businessman present at the meeting".

Background:

• According to Reuters sources, it was reported that the Russian government is preparing a possible 10% cut to all "non-sensitive" spending in this year's budget, but the final decision will depend on the sustainability of rising oil prices driven by the war in Iran.
• Kremlin leader Vladimir Putin signed a decree allowing companies that fail to fulfil state orders during martial law to be placed under external administration.
• Russia is planning to complicate or completely block the return of assets to foreign companies that left the country after the start of the full-scale war.
• Kremlin leader Vladimir Putin said that companies which "slammed the door defiantly" and left the Russian market would not be allowed to buy back their assets at low prices or reclaim their former market positions.

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