Two sovereign funds, the Reserve Fund and the National Wealth Fund, are now down to less than $104 billion, compared with a combined $160 billion at the beginning of 2015, according to the Finance Ministry’s website. “They have been used as a strong, public indicator that the state still has capabilities.”īut they are shrinking fast with no economic revival in sight. Putin always refers to them when he talks about economic difficulties,” Mr. “The reserve funds have been something sacred. Sechin is known for a take no prisoners attitude toward anyone who challenges him, so the bribery charges against Mr. In October, it was announced that Rosneft would acquire a little more than half of Bashneft for more than $5 billion. Putin backed the sale after initially hesitating. Ulyukayev tried to postpone the deal, but Mr. Sechin wanted it for Rosneft, despite the law and the widespread, negative public perception that the elite was once again, as it did in the 1990s, abusing privatization laws to seize commodity resources at bargain prices. Ulyukayev had to sign off on the sale of any state assets.
A private company, Lukoil, also expressed interest at a lower price.Īs minister of economic development, Mr. It also increases his power, though there was a small wrinkle in the form of a law suggesting, except in extreme instances, that state assets should be sold into private hands. Sechin’s purchase of state assets transfers that money directly into the Russian treasury. With the state’s two main reserve funds dwindling, the Russian government covets that cash. agent and Putin confidant, is sitting on about $15 billion in cash. The basic scenario goes something like this:Īs the head of Rosneft, Igor Sechin, a former K.G.B.