Russia's borrowing costs have peaked in last 9 years

11:17 - 4.06.2024

June 4, Fineko/ During the war, Russia faced the highest borrowing costs since 2015.

ABC.AZ reports that bond yields in Russia have reached the highest level since 2014.

As the costs of Russia, which launched a military operation in Ukraine in February 2022, grow, it becomes increasingly difficult for the government to borrow money from the existing single market in order to cover a permanent budget deficit.

Russia's financial deficit is projected at 0.9% of GDP. The government is targeting 4.1 trillion rubles ($46 billion) in domestic bond sales this year to help close the financing gap.