Russian accounts inspector finds problems with National Welfare Fund use
BOFIT Viikkokatsaus / BOFIT Weekly Review
2015/34
The Accounts Chamber of the Russian Federation reports that assets invested from the National Welfare Fund to finance large infrastructure projects have not all been used as intended. The abuses of road-builder Avtodor, which is tasked with construction of a ring road around Moscow, received specific criticism. Avtodor has this year received from the Fund nearly 40 billion rubles (€600 million) through Gazprombank purchasing Avtodor bonds. The Accounts Chamber criticized Avtodor for not using the disbursed funds to break ground on construction work as planned, but deposited most of the money in Gazprombank also receiving interest income. The Accounts Chamber also uncovered similar discrepancies with most other investment projects funded out of the National Welfare Fund.