Russian government has admitted that one of the entities of the federation, the Republic of Ingushetia, is now bankrupt.
Ingushetia’s finances will therefore be now managed by the federal Finance Ministry. The government’s decision on the republic’s bankruptcy was made on the basis of the analysis performed by the Accounts Chamber.
Ingushetia, located in the Northern Caucasus, will no longer be able to independently raise money to repay its debts and will see its financial sovereignty restricted while Finance Ministry will oversee republic’s cashflows.
As Invest Foresight reported earlier, Russia’s Finance Minister Anton Siluanov admitted that pandemic caused the greatest economic decline since WW2, while the recovery of Russia’s economy, according to Minister of Economic Development Maxim Reshetnikov, has dramatically slowed down.