Zelensky-Biden Meeting on the Radar, Govt Preps Budget Code Amendments

LOCAL NEWS

• Ukrainian President Zelensky set to visit the US today and conduct meetings with Biden. Kiev expects Biden, who desperately needs a quick diplomatic victory, will become more accommodating on issues of cooperation in the field of security and will meet halfway on the issue of Nord Stream-2.
  • However, with NS2 so close to completion, this seems unlikely in terms of meaningful measures on the pipeline. Zelensky will also likely be pursuing NATO accession or access to US missile systems which has been a point of tension with Russia
• Finance Ministry prepares draft of amendments to the Budget Code, fixing at the level of the law part of the temporary anti-crisis practices of the government in the administration of the budget. In particular, it is planned to preserve government's ability to direct the funds of the National Welfare Fund (NWF) to close the budget deficit in case of a fall in oil prices in excess of the budgeted volume.
  • Also plans to extend the possibility of using income from the management of the fund's funds for current expenses until 2025. In addition, the distribution of excise taxes between the center and the regions is being revised - allegedly in favor of the latter
• Govt includes sugar in the list of agricultural products for state interventions in Sept-Oct. "Interventions are used as a tool to regulate prices and support agricultural producers.
  • When prices are low, the state purchases products from farmers for the intervention fund. In case of a noticeable rise in prices, it sells, thereby stabilizing the market situation."
• Russian defense Min says Russia does not perceive Ukraine as a threat and that Ukrainians are "brotherly people." Expressed hope that the situation there would change, and the "nationalist mayhem" would stop
• National Bureau of Credit Histories (NBCH) says consumer loans issued in July decreased by 17.4% compared to June - 1.23 million units vs 1.49m. Equifax CEO says "Such dynamics suggests banks have reduced risk appetite in providing large amounts of consumer loans, which may partly be a consequence of tightening regulatory pressure."
  • Says, however, he does not expect a sharp decline in consumer lending in August and even predicts a possible increase due to the upcoming increase in spending in September
• Russia registers 19,286 covid cases & 797 deaths on Sunday