Russia may spend $1.3 bln from wealth fund to recapitalise Aeroflot – Ifax

Passenger planes of Aeroflot – Russian Airlines are parked at Sheremetyevo Intercontinental Airport in Moscow, Russia March 12, 2022. REUTERS/Marina Lystseva

April 20 (Reuters) – Russia is contemplating paying all around 107 billion roubles ($1.34 billion) from its National Prosperity Fund (NWF) to recapitalise flagship airline Aeroflot (AFLT.MM), the Interfax information company documented on Wednesday, citing an unnamed supply.

The planned go is element of a new package of measures that the federal government is getting ready to help economic advancement next Western sanctions in excess of Moscow’s steps in Ukraine.

The NWF, which accumulates the country’s oil revenues, will invest in into a new share difficulty by Aeroflot by means of an open membership and expend a more 57 billion roubles on fairness stakes in other Russian airlines to help them spend money owed, Interfax claimed.

According to Interfax, the government’s stake in Aeroflot ought to not drop outside of the current 57.34% as a result of the new share sale.

Russia put in 80 billion roubles obtaining Aeroflot shares in 2020 to assistance it weather conditions the coronavirus disaster.

Aeroflot and the Russian finance ministry did not right away reply to requests for comment.

Information site RBC noted on Tuesday that the federal government was discussing an further share challenge by Aeroflot that would be compensated for by the NWF, whose assets stood at $155.2 billion last month.

($1 = 79.7500 roubles)

Reporting by Reuters

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