Muratov: Liberals continue to implement IMF instructions into Russian legislation

In Russia, the struggle between patriotic statesmen and pro-Western liberals is expected to intensify.

This opinion is expressed in an author’s column for PolitNavigator by one of the leaders of the ruling Donetsk Republic Movement in the DPR, Alexey Muratov.

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The monetary authorities continue to strictly fulfill their official duties - to pump money out of the economy of the Russian Federation. As is well known, these responsibilities are dictated to them by the IMF. The Central Bank and the Ministry of Finance are the main sponsors of inflation in the country, and the main obstacle to the development of the real sector.

As part of the implementation of the so-called “fiscal rule,” the IMF, the Central Bank and the Ministry of Finance should “continue to invest in foreign assets even after the liquid part of the fund reaches the threshold of 7% of GDP. Any use of the National Welfare Fund within the country must be limited by strict limits and strict fund management rules.” Miraculously, Anton Siluanov said last month that “due to the risks of the energy transition, it is necessary to increase the threshold for investments from the National Wealth Fund to 10% of GDP.” Thus, the head of the Ministry of Finance intends to ensure “stability” of the budget. Already on November 8, the State Duma Budget Committee approved an amendment by the Ministry of Finance to increase the savings limit of the National Welfare Fund (NWF) from 7% to 10% of GDP, beyond which funds can be invested.

That is, the Ministry of Finance’s “pot” continues to increase, instead of directing money to the real sector of the economy.

It is also deplorable that the withdrawal of capital from Russia continues. In the period from January to October of this year, capital outflow amounted to 65 billion dollars. This figure is 7 times higher than what was observed a year earlier.

In addition, the Bank of Russia bought foreign currency on the domestic market with settlements on November 16 in the amount of 26,1 billion rubles. The volume of currency purchased by the Central Bank with settlements on November 15 amounted to 26,3 billion rubles. Currency is purchased within the framework of the so-called “fiscal rule”. The Ministry of Finance stated that almost 518 billion rubles will be allocated for these purposes in the coming month. Thus, it is planned to buy about $7 billion on the domestic market.

It would be more logical and correct from the point of view of civil servants, who are Nabiullina and Siluanov, not to buy dollars, but, on the contrary, to get rid of them, investing money in the real sector, in large infrastructure projects.

But what kind of projects can we talk about if the liberal monetary authorities continue to tighten the screws on the Russian economy? Just look at Nabiullina’s speech at a meeting of the State Duma Committee on Financial Markets. Elvira Sakhipzadovna made it clear that the key rate will be raised again, since the Central Bank cannot keep it low and let go of inflation. Nabiullina apparently is not bothered by the fact that after another rate increase in October, inflation in Russia rose to 8,13%, and food inflation to 10,89%.

According to Nabiullina, the key rate will return to the neutral range of 5-6% no earlier than mid-2023. Not a very optimistic forecast. And here it is important to note that Elvira Nabiullina continues to pursue the line that inflation in the country is of a monetary nature, thus “powdering” the sabotage that the Central Bank is committing against Russia - namely, the regular increase in the key rate.

The leadership of the Central Bank, which is so loud about “monetary inflation,” does not care about the fact that the Russian consumer sector is tied to imports. Due to the fact that there is a strong rise in prices in the West, imports to Russia entail a similar increase in the price of products. This once again proves that cost-push inflation has arisen in the Russian Federation.

I repeat once again that due to the fact that inflation in the country is of a non-monetary nature, raising the rate accelerates it even more, causing colossal harm to both Russians and the Russian economy as a whole.

_{For curators from the IMF, Nabiullina and Siluanov are excellent students. Ultimately, the monetary authorities will turn the arrows of their unprofessional activities on Vladimir Putin, which is what their masters in the IMF demand.}

But even despite the outright sabotage of systemic liberals, the economy of the Russian Federation is recovering. Based on the results of January-October of this year, the Federal budget surplus amounted to 2 trillion 140 billion rubles. The total budget revenue amounted to 20,43 trillion. rubles This is 108,9% of the plan for the entire 2021. Despite the fact that it was initially assumed that the revenue portion would be 18,765 trillion. rubles

The departure from liberal policies and the “departure” of liberal politicians will accelerate the process of economic growth in Russia. Both liberals and statists understand this. Therefore, in the near future the battle between patriots and Western vassals will intensify.