Russian National Welfare Fund Assets May be Invested in Gas Pipeline to China

Russia’s National Welfare Fund assets may be invested in the construction of a gas pipeline to China, Minister of Economic Development Alexei Ulyukayev said on Wednesday, June 11.

“This is probably not a net increase in the authorized capital of Gazprom but this may be a contribution to an SPV [special purpose vehicle] to be created by Gazprom,” he said.

In March 2013, Gazprom and CNPC signed the Memorandum of Understanding for cooperation between the two companies in pipeline gas deliveries to China via the eastern route.

“I think there is no stagflation, and the risks, thought existent, are not high,” he said, adding that the current inflation rate could not be described as high for the Russian economy. “This inflation level is not high for us. As a matter of fact, inflation is high but this level was preceded by a still higher one. That is why, this tendency is characterized by decreasing economic growth rates and inflations decrease rather than increase,” he stressed.

“Risks that we might have higher inflation than we are having now of have recently had accompanied by low economic growth rates do exist, but are not high, I think. It looks like inflation will go down,” he said.

(en.itar-tass.com  Edited by Topco)