Cabinet Approves 2022-24 Draft Budget, Gazprom Squeezes EU on Gas Volumes

LOCAL NEWS

• Cabinet approves the 2022-2024 draft budget and will be submiteed to the Duma by 1 October. The Federal budget is expected to have a RUB1.41tn ($15.2bn) surplus in 2022, RUB 437bn ($5.9bn) in 2023 & RUB 315bn ($4.3bn) deficit in 2024.
  • Nominal revenue growth is expected at RUB 25.2tn ($341bn) in 2022, RUB25.54tn ($349bn) in 2023 & RUB25.83tn ($352bn) in 2024. Planned spending in 2022 is RUB23.61tn ($322bn), RUB 25.1tn ($343bn) in 2023 & RUB26.14tn ($357bn) in 2024
• Moscow Condemns UK's attempt to shift blame in Skripal case and continues to demand comprehensive information from London on the issue. Calls for a professional investigation on the matter after a third Russian was implicated yesterday in the Salisbury poisoning case
• Biden & Boris Johnson agree that the approach to Russia and China should be based on common values following yesterday's talks. Both parties will reconvene on Dec 9-10 for further discussions to discuss the fight against corruption, totalitarianism and respect for human rights
• Gazprom rejects gas transit increase as Europe faces winter fuel crisis, turning down the option to boost volumes for October auctions.
  • Russian gas accounts for 40% of total in Europe and the West have said this is an attempt to squeeze Europe ahead of winter.
  • NS2 is currently awaiting certification from German regulators but may only be able to release half of its capacity or be forced to open up to third party producers under the recent EU ruling. Russia said this morning that it is not using NS2 to manipulate the EU