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<ul class="summary-list"><li>The liquid assets in Russia's national wealth fund fell 44% from January 2022 to December 2023.</li><li>Total holdings in the fund tumbled 12% over the same period amid the war in Ukraine, per Bloomberg.</li></ul>The stash of liquid assets in Russia's national wealth fund has fallen over 44% since Moscow invaded Ukraine, according to a <a target="_blank" href="https://www.bloomberg.com/news/articles/2024-01-17/war-in-ukraine-drains-nearly-half-of-accessible-russian-reserves">Bloomberg</a> report of Russian finance ministry data on Wednesday.The amount of assets that can be easily liquidated under Russia's National Wellbeing Fund fell from 8.9 trillion rubles, or $100.4 billion, to 5 trillion rubles in the two years from January 2022 — the month before the invasion — to December 2023, according to Bloomberg.Meanwhile, the national wealth fund's total holdings tumbled 12% over the same period.The massive slump in the national wealth fund's liquid assets came as its holdings in Russian companies and in infrastructure bonds surged by 2 trillion rubles, per Bloomberg calculations. This suggests the state is using its liquid reserves to support the economy.Russia's finance ministry also used around 3 trillion rubles from the fund to cover its <a target="_blank" href="https://www.reuters.com/markets/europe/russias-budget-deficit-seen-around-1-gdp-this-year-finance-minister-2023-11-22/">budget deficit in 2023</a> after it doubled <a target="_blank" href="https://www.reuters.com/world/europe/russia-doubles-2023-defence-spending-plan-war-costs-soar-document-2023-08-04/">defense spending</a> in the same period.Russia could be running out of time and money soon as it keeps funding the war in Ukraine, which is soon heading into its third year.While Russia's economy still appears resilient, it is dealing with a swathe of Western sanctions and weak international oil prices that have fallen about 10% over the past 12 months. <a target="_blank" href="https://tass.com/economy/1730001">Russia's flagship Urals crude oil</a> was exported at an average price of $62.99 a barrel last year — down 17% from a year ago, according to the finance ministry.Alex Isakov, an economist at Bloomberg Economics, said Russia's national wealth fund's liquid assets will last for another year or two if the country's oil export prices fall below $50 a barrel."If oil prices continue to ignore the risks of supply disruption from the Israel-Hamas war, the remaining stock of the NWF's liquid assets will continue to dwindle, making Russia increasingly vulnerable to shocks," said Isakov.

Russia has burned through almost half of the liquid reserves in its national wealth fund as it bleeds money amid the war in Ukraine

<ul class="summary-list"><li>Russia seized some 500 leased Boeing and Airbus airliners after invading Ukraine.</li><li>But it's hard to keep the planes flying with little access to parts because of sanctions.</li></ul><a href="https://www.businessinsider.com/12-billion-worth-leased-aircraft-stranded-in-russia-ukraine-sanctions-2022-3">Western sanctions against Russia have taken a toll on the country's aviation sector</a> — forcing the country to get creative to keep its planes flying.Quickly after Russia invaded Ukraine in February 2022, western countries enacted heavy <a href="https://www.businessinsider.com/Aircraft-lessors-may-have-to-write-off-planes-in-Russia-2022-3">sanctions against Russia</a> to punish Vladimir Putin. This included closing US, EU, and other allied airspace, preventing planemakers like Boeing and Airbus from sending spare parts to Russia, and stopping countries like <a href="https://foreignpolicy.com/2023/03/06/turkey-elections-russia-erdogan-putin-nato/">Turkey from refueling Russian planes.</a>The goal was to <a href="https://www.businessinsider.com/russia-is-seizing-hundreds-of-lessor-planes-poses-risk-passengers-2022-3">cut Russia off from the rest of the world.</a>In response, the Kremlin countered with its own sanctions. It even went as far as to seize some 500 leased western-built airliners — which are worth an estimated $10 billion, <a href="https://www.reuters.com/business/aerospace-defense/aviation-lessors-fight-stop-insurance-dispute-hearings-russia-2023-07-07/" target="_blank" rel="noopener">according to Reuters.</a>Despite many <a href="https://www.businessinsider.com/canada-seized-one-of-russias-few-remaining-an124-cargo-planes-2023-6">allied nations' attempts to reclaim the Russian-seized aircraft</a>, most lessors have had no choice but to forfeit their planes to Russia due to airspace restrictions and pushback from its government and airlines.And, the volatile nation continues to prove it's more bulletproof than expected. In 2022, Russia <a href="https://www.businessinsider.com/russia-airlines-received-14-million-illegal-aircraft-parts-despite-sanctions-2023-5">received over $14 million worth western-made parts</a> thanks to underground shipments.But, the illegal import schemes are not the only <a href="https://www.bloomberg.com/news/articles/2023-03-01/russian-airlines-fly-airbus-boeing-jets-despite-sanctions" target="_blank" rel="noopener">methods keeping Russia's airlines alive</a>. <h2>Creating a 'Frankenstein fleet'</h2><div type="image" title="An Aeroflot engine being checked by maintenance in Russia." height="717" width="957" msid="102275054" hostid="261" sizebytes="69858"></div>Once countries stopped sending parts to Russian carriers like Aeroflot and S7 Airlines, the companies were forced to find new suppliers. Some bought second-hand from places like Iran and China, while others <a href="https://www.businessinsider.com/russian-airlines-may-not-have-enough-parts-repair-planes-sanctions-2022-3">"cannibalized" existing jets. </a>However, robbing spare parts could make the resulting "Frankenstein fleet" worthless outside of Russia's borders, and <a href="https://www.ch-aviation.com/portal/news/126751-lessor-carlyle-lays-new-legal-claims-over-russian-planes" target="_blank" rel="noopener">lessors have since written off the aircraft</a> without much hope they'll ever see them again.Moreover, the potentially un-airworthy parts could create unnecessary safety risks. Not to mention, once airline inventory gets low, some carrier could encourage pilots and mechanics to purposely overlook certain repairs —<a href="https://www.businessinsider.com/russian-airline-aeroflot-asked-employees-not-report-plane-malfunctions-report-2023-5"> similar to what Aeroflot reportedly did earlier this year.</a><h2>Buying off seized jets using rainy-day money</h2><div type="image" title="An Aeroflot Boeing 777-300ER parked at the gate at Los Angeles International Airport before the war." height="1333" width="1777" msid="102275057" hostid="261" sizebytes="143716"></div>Since Russia seized hundreds of planes, <a href="https://www.jdsupra.com/legalnews/leased-aircraft-stranded-in-russia-a-2276918/" target="_blank" rel="noopener">airplane leasing companies have filed multi-billion dollar insurance claims</a> to recoup lost money — though many are being denied by insurers.Nevertheless, some lessors may actually get a check directly from the Kremlin.Last week, <a href="https://tass.com/economy/1651187" target="_blank" rel="noopener">Russian media outlet TASS</a> reported the government has allotted 300 billion rubles (about $4 billion) from Russia's National Wealth Fund — essentially its rainy day money — to buy off 80-90 of the foreign-made aircraft it seized from lessors.Leasing companies in the EU are able to accept the payment thanks to a sanction amendment that says <a href="https://www.aerotime.aero/articles/russian-airlines-to-complete-foreign-aircraft-purchase#:~:text=Russian%20airlines%20to%20complete%20foreign%20aircraft%20purchase%20by%20October%2C%20says%20ministry&amp;text=Russian%20airlines%20will%20receive%20funds,run%20media%20outlet%20TASS%20reported." target="_blank" rel="noopener">aircraft ownership can be transferred to Russian airlines</a> if a lease agreement was signed prior to Russia's invasion of Ukraine, and only after all of the lease payments have been made.Airlines including Aeroflot, S7, Ural Airlines, RusLine, and iFly have finalizing agreements, <a href="https://www.jdsupra.com/legalnews/leased-aircraft-stranded-in-russia-a-2276918/" target="_blank" rel="noopener">Aerotime Hub reported</a>, but are still waiting on their NWF funds. Russian flag carrier <a href="https://www.aerotime.aero/articles/russias-aeroflot-buys-10-stranded-boeing-777s-from-irish-lessor" target="_blank" rel="noopener">Aeroflot has already received a portion of the money </a>for 10 Boeing 777-300ERs.According to TASS, Russia's deputy minister of transport Igor Chalik said he is uncertain of when exactly airlines will receive the federal funds, but noted "our task is to complete this program in any case by the end of September."As of July 1, Russia's NWF stood at $145.6 billion — down from $153.1 billion on June 1, <a href="https://archive.minfin.gov.ru/en/key/nationalwealthfund/statistics?id_65=104686-volume_of_the_national_wealth_fund" target="_blank" rel="noopener">according to country's Ministry of Finance.</a>

How Russia is evading sanctions to keep $10 billion worth of seized Boeing and Airbus planes flying

<ul class="summary-list"><li>A leading <keyword id="6354763" type="UNKNOWN" weightage="60" keywordseo="ipo" source="Orion">IPO</keyword> banker in Moscow claimed it may be decades before the market witnesses another Russian listing.</li><li>Last year was "sensational," but the next IPO may not be "until my future grandchildren's lifetime," he told Insider.</li></ul>A leading IPO banker in Moscow claimed it may be decades before the market witnesses another Russian equity listing. "The next Russian IPO may be decades away in my future grandchildren's lifetime," said the banker, who declined to be named for fear of losing his job. "All I know for certain is that it won't be for a long while. We are now in a new world. Nobody knows what the fuck is happening, and we don't even know when the equity market is going to open here."Russia last year enjoyed its biggest boom in stock market debuts in a decade. Listings rebounded spectacularly after a lull caused by Western sanctions imposed on the Kremlin for its annexation of Crimea in 2014 and alleged interference in the 2016 US election. "After the horror show of Crimea, it took us a few years before we could even consider taking a company on a roadshow," the banker, who worked on the largest Russian IPOs last year, told Insider. "This is tracking much worse now, so it might be a good few years before we can even think about any plans." Russian companies attracted more than $7 billion in IPOs and secondary listings in Moscow, New York, and London last year, the most since 2011, according to <a href="https://www.reuters.com/article/russia-ipo-idCAKBN2IT10Z">data compiled by Reuters</a>. The IPO bonanza started in November 2020 when "Russia's Amazon," Ozon, tapped into the deep pool of US tech investors by <a href="https://www.themoscowtimes.com/2020/11/24/ozon-shares-jump-on-us-ipo-a72139">raising $1.2 billion</a> on the Nasdaq. Four companies listed in the autumn of last year alone. In November, SPB Exchange, Russia's second-largest stock exchange, raked in around $175 million in an IPO on its own platform. Real estate database Cian also raised more than $290 million in a listing on the New York Stock Exchange. IT company Softline attracted $400 million in a London debut in October, shortly after Renaissance Insurance had raised $250 million in Moscow. "Last year was sensational for us," said the Moscow banker, who worked on several of the biggest deals. "We hadn't seen bonuses like it since the huge Russian IPO deals before the 2008 crash."In the first half of 2021, three companies completed market debuts. Cut-price retailer Fix Price's dual listing in London and Moscow raised almost $2 billion in March, making it the biggest Russian listing since Western sanctions were introduced in 2014. Forest group Segekha and private healthcare provider EMC raised $402 million and $500 million, respectively, in Moscow.<h2>Before the invasion of Ukraine, optimism had been high </h2>Prior to Russia's invasion of Ukraine on February 24, bankers had been looking forward to another bumper year. Russia's petrochemical giant Sibur and metal and mining group Metalloinvest were among ten companies firmly in the pipeline for 2022. Both Sibur and Metalloinvest had been valued in excess of $20 billion by investment bankers. The Moscow Exchange, Russia's leading stock exchange, has been closed since the invasion started on February 24 after shares and the rouble went into freefall after widespread Western sanctions were imposed. A sovereign default of foreign debt was avoided after Russia made payments worth $117 million.The Moscow Exchange <a href="https://www.ft.com/content/d0390917-41e2-4f31-b355-6f73759e5782">reopened for business on Monday</a>, but only for limited trading in local rouble-denominated bonds. Trading in equities may resume later this week. Meanwhile, the London shares of blue-chip stocks Sberbank and energy monopoly Gazprom have fallen by 96% and 90%, respectively.<h2>Fears — and hopes — for what's next</h2>Market insiders fear the Moscow shares will be blown away when the stock exchange reopens, even if the Kremlin turns on the firehose from its $122 billion National Wealth Fund (NWF) "rainy day fund.""Some of the investment banks and hedge funds will try to figure out how to make money, but the whole place is fundamentally at zero and shorting is banned," said a senior Russian equity trader, who declined to be named for fear of losing his job. A Moscow-based equity analyst said the performance of Russian metal and mining companies listed in London has offered hope. Polymetal, the gold and silver producer, has rallied by 60% while Evraz, a steelmaker and Petropavlovsk, a gold miner, have climbed 30 to 40% from their lows. "The rumor is that money from China and the Middle East is ready to go to pick up assets at distressed levels, but we won't know until the market opens," said the equity analyst. One leading brokerage is already on the verge of collapse and traders fear that several other independent players will go under. Sova Capital Limited, a brokerage owned by Russian banker Roman Avdeev, appointed special administrators on March 3 to help them fulfill commitments to clients and counterparties. French bank BNP Paribas on Monday announced it was suspending operations in Russia, joining an exodus that includes Goldman Sachs, JP Morgan, and Deutsche Bank. Anonymous, an international hacker collective, <a href="https://lenta.ru/news/2022/03/22/anonimous/">declared</a> it was giving Western companies still active in Russia 48 hours to leave. Those companies include Citi and Austria's Raiffeisen Bank, one of the biggest foreign lenders in Russia.

A top IPO banker in Moscow fears it will be decades before he sees another listing: 'We're in a new world'

<ul class="summary-list"><li>In March, Rep. <keyword id="11923746" type="UNKNOWN" weightage="60" keywordseo="matt-gaetz" source="Orion">Matt Gaetz</keyword> said his family was being extorted after others learned of a probe into him. </li><li>The DOJ is investigating allegations that Gaetz had a sexual relationship with a 17-year-old. </li><li>On Tuesday, a Florida man was indicted by federal prosecutors who claim he tried to defraud the Gaetz family. </li></ul>A Florida man was arrested and charged for allegedly trying to defraud the family of GOP Rep. Matt Gaetz of $25 million, over the pending sexual assault allegation against Rep. Gaetz.The Justice Department <a href="https://www.justice.gov/usao-ndfl/pr/fort-walton-beach-man-faces-federal-indictment-25-million-scheme-defraud">announced on Tuesday</a> that between March 16 and April 7, Stephen Alford, 62, "is alleged to have been involved in a scheme to obtain money based upon false promises or guarantees he made to the victim that Alford could deliver a Presidential Pardon for a family member of the victim." The <a href="https://www.justice.gov/usao-ndfl/press-release/file/1429001/download">indictment</a> does not specifically mention Gaetz by name, but sources have told multiple outlets including <a href="https://www.cnn.com/2021/08/31/politics/florida-man-charges-gaetz-family-fraud-scheme/index.html">CNN</a> and <a href="https://www.justice.gov/usao-ndfl/press-release/file/1429001/download">The New York Times</a> that the case is related to the Florida congressman.The NWF Daily News reported that Alford is a <a href="https://www.nwfdailynews.com/article/20160215/NEWS/160219473">Florida real estate developer and convicted felon</a>. In late March, the Department of Justice said it was <a href="https://www.businessinsider.com/justice-department-investigating-matt-gaetz-sexual-relationship-17-year-old-2021-3" target="_blank" rel="noopener">investigating whether Gaetz had a sexual relationship with a 17-year-old girl,</a> which would violate federal sex-trafficking laws. He has denied the allegations and no charges have been filed against him.At the same time, Gaetz <a href="https://www.businessinsider.com/matt-gaetz-sex-trafficking-extortion-investigation-explainer-timeline-2021-3">said his family was being extorted by two former government officials</a>: former Air Force Intelligence officer Bob Kent and former federal prosecutor David McGee, who had learned about the DOJ probe. The court document said that Alford had created a letter called "Project Homecoming" which laid out a scheme to extort $25 million from the GOP Reps' father. According to the DOJ, Alford then gave the letter to someone identified as "Person A" to discuss with D.G., or Don Gaetz.<a href="https://www.politico.com/news/2021/08/31/man-charged-extortion-gaetz-508122">Politico</a> reported that Person A is Kent.Person A met with Don Gaetz and spoke with him about the letter, according to the court document. Alford then met with Don Gaetz to further talk about the scheme, which included Alford getting a Presidential pardon for Rep. Gaetz and locating and releasing a person called R.L., <a href="https://www.justice.gov/usao-ndfl/press-release/file/1429001/download">the court document</a> said.The Times identified R.L. as Robert Levinson, <a href="https://www.businessinsider.com/us-says-iran-kidnapped-robert-levinson-2013-1">a former FBI agent who has been missing since 2007.</a> In March 2020, officials and Levinson's family said they believed <a href="https://www.businessinsider.com/fbi-agent-robert-levinson-has-died-family-says-iran-2020-3">he died while imprisoned in Iran.</a>The court documents said Alford told Don Gaetz he had to transfer $25 million into the trust accounts of a law firm only identified as "Law Firm A." The money was to be used to release Levinson, and that would get Rep. Gaetz a pardon. Alford falsely said he could get a pardon for Rep. Gaetz, even telling Don Gaetz he would take him "by the hand to see the President of the United States," according to the court document.The court documents said Alford then told Don Gaetz he negotiated the price down to $15.5 million which required him to initially pay $1 million in cash and put $4.5 million into the account of "Attorney A," who Politico identified as McGee, the former federal prosecutor.Politico reported that Kent said he was introduced to Alford by McGee, who was his lawyer in the past. Alford faces charges of wire fraud and destruction of property subject to a seizure warrant, for allegedly destroying an iPhone during a seizure of property search, the court documents said. In a <a href="https://twitter.com/mattgaetz/status/1432848300567416835?s=20">tweet</a>, Rep. Gaetz said he'd been "proven right.""They tried to extort me on a pile of lies. Alford wasn't acting alone - he had help from people with strong ties to the federal government. There is much more to this attempt to destroy me," he said. Insider was unable to reach Rep. Gaetz for comment at the time of publication, but his spokesman Harlan Hill told Politico that "the release of the Alford tapes will further exculpate Rep. Gaetz and implicate those with long-standing links to the federal government."

A Florida man was indicted on charges of trying to defraud Matt Gaetz and his family out of $25 million

<ul class="summary-list"><li>NASCAR driver Ryan Newman was hospitalized and <a href="https://www.businessinsider.com/daytona-500-ryan-newman-serious-condition-hospital-nascar-2020-2?r=US&amp;IR=T">left in a "serious condition" Monday night</a> following a devastating wreck during the final lap of the Daytona 500.</li><li>The 42-year-old driver crashed into multiple other cars at 190 miles per hour before his car flipped into the air, landed on its roof, and erupted into flames.</li><li>Corey LaJoie, the driver who unavoidably slammed into the back of Newman's car and sent it hurtling into the air, found out on camera that his opponent had been immediately sent to the hospital.</li><li>In an interview on "Good Morning America," LaJoie told Michael Strahan that he "didn't even know who I hit" during the chaotic final lap.</li><li><a href="https://www.businessinsider.com/?hprecirc-bullet">Visit Business Insider's homepage for more stories</a>.</li></ul>NASCAR driver Ryan Newman was hospitalized and <a href="https://www.businessinsider.com/daytona-500-ryan-newman-serious-condition-hospital-nascar-2020-2?r=US&amp;IR=T">left in a "serious condition" Monday night</a> following a devastating wreck during the final lap of the Daytona 500.And despite his direct involvement in the scary scene, Corey LaJoie - the American driver who unavoidably slammed into the back of Newman's car and sent it hurtling into the air - had no idea how severe the crash was until he spoke with reporters.A video shared by Fox Sports' Bob Pockrass shows LaJoie first learning that Newman was immediately transported to the nearby Halifax Medical Center. While rescue crews extinguished the flames and pulled Newman from the wreck, LaJoie was receiving medical care of his own.LaJoie's shock and concern at the hearing of Newman's situation were apparent despite the chaos of the media scrum surrounding him."Oh! What?" he said. "Well the narrative kind of changed a little bit now that Bob said [Newman] went straight to the hospital. That's obviously scary."Shortly after the race, LaJoie shared his concern for Newman on Twitter.In an interview on "Good Morning America" Tuesday morning, LaJoie - who finished the race in eighth place - told Michael Strahan that he "didn't even know who I hit" during the chaotic final lap of the year's most high-profile NASCAR race."It was wild, man," LaJoie said. "I didn't even know who I hit because you're concentrating on trying to get a good finish and nobody realizes how fast 200 miles per hour is or how uncontrollable these cars are when you get out of shape."I didn't even know who I hit or what the extent of the crash was until I got out of the infield care center - until somebody told me that they took [Newman] straight to the hospital," he added. "I was obviously nervous. I still haven't seen the replay beyond what was shown right there. It was obviously a very scary crash."The 28-year-old also took a moment to credit the NASCAR research and development group for working to develop the safest possible race cars."The fact that he's still with us and he can hopefully make a full recovery is just a testament to the NASCAR R&amp;D group and how safe they're trying to make these race cars," LaJoie said.As is common practice after a serious accident, NASCAR has taken both Newman's and LaJoie's cars to its Research &amp; Development Center to examine the vehicles, per <a href="https://twitter.com/BrettFOX46/status/1229785114235883520">Fox 46's Brett Baldeck</a>.<ul class="read-more-links"><li>Read more:</li><li><a href="https://www.businessinsider.com/ryan-newman-daytona-500-wife-prayed-safe-race-before-crash-2020-2">Ryan Newman's wife - whom he split from 5 days ago - tweeted that she was 'praying for a safe race' just hours before his Daytona 500 crash</a></li><li><a href="https://www.businessinsider.com/pictures-ryan-newman-daytona-500-crash-unfolded-2020-2">Photos show how Ryan Newman's devastating, fiery 190 mph crash at the Daytona 500 unfolded</a></li><li><a href="https://www.businessinsider.com/ryan-newman-daytona-500-nascar-crash-trump-tweets-videos-2020-2">Trump shared a video of Ryan Newman's horrific Daytona 500 crash, which saw his car flip over and burst into flames</a></li><li><a href="https://www.businessinsider.com/daytona-500-ryan-newman-serious-condition-hospital-nascar-2020-2">NASCAR driver Ryan Newman is in serious condition after his car spun out, hit a wall, and flipped into the air at the Daytona 500</a></li></ul>

The driver who collided with Ryan Newman in the horrific Daytona 500 crash found out on camera that Newman had been taken to the hospital

<div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"></div></div></div>"WE HANDLE our gold and currency reserves and government reserves sparingly." So said Vladimir Putin on November 13th. 
Mr Putin is wrong. In the past year Russia's foreign-exchange reserves have fallen by 20% as the central bank has tried to prop up the rouble. 
They stand at around $370 billion, with $12 billion more at the IMF (see chart). The central bank claims all of this is readily available. But there is some reason to doubt that.
Foreign-exchange reserves have assumed a new importance for Russia in recent months. As Western sanctions have shut Russian companies out of foreign debt markets, they struggle to raise money.
That makes it harder to pay back the $130 billion of external debt that comes due between now and the end of next year. The Kremlin can step in: but if it helps Rosneft, a giant oil company, as it is being asked to, calls for more bail-outs will get louder.
Some people argue that Russia's reserves are so big that they can accommodate such demands and weather the economic storm. But the central bank exaggerates the reserves at its disposal. About $170 billion of its assets sit in two giant wealth funds, the Reserve Fund and the National Wealth Fund (NWF), and much of what is in these funds could prove illiquid or inaccessible if called on to meet short-term financing needs.
<div class="KonaFilter image-container"><div class="image on-image"></div></div>
Cash from the $82 billion NWF is committed to long-term infrastructure projects, says Sergei Guriev of Sciences-Po, a French university. The NWF has also provided money to VEB, the Russian development bank, to finance construction at the Sochi Olympics.
The loans by which it did so have been "restructured" to allow delayed repayment. Mr Guriev says many people believe the money to have been embezzled. The NWF may thus be unable to offer any liquidity to the government.
In terms of money that could actually be put to use, Russia's reserves could be more than $100 billion lower than the headline figures suggest. Mikhail Zadornov, a former finance minister, said in a recent interview with Dozhd, a television channel, that the usable amount could be as low as $200 billion.
If current trends continue Russia may soon have enough for just three months' worth of imports: below that level, financiers start to panic. That is bad news for a country that will struggle to find cash elsewhere.
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 Russia's official reserve figures overstate the funds it has at its disposal

<div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"></div></div></div>ABC reporter Jonathan Karl pressed White House press secretary Sean Spicer on Monday over Spicer's inaccurate claims about the size of inaugural crowds.During what President Donald Trump's team dubbed the "first official press briefing," Karl confronted Spicer about his Saturday statement that Trump's inauguration was the "largest audience to ever witness an inauguration - period - both in person and around the globe," despite evidence to the contrary."Is it always your intention to tell the truth on that podium, and do you pledge to never to knowingly say something that is not factual?" Karl asked.Spicer said that his intention was "never to lie" to reporters and that the administration and journalists could "disagree on the facts.""There are times we believe something to be true or we get something from an agency or we act in haste because the information available wasn't complete, but our desire is to communicate with the American people and make sure you have the most complete story at the time, so we do it," Spicer said."I'm going to come out here and tell you the facts as I know them, and if I make a mistake, I'll do my best to correct it," he added.The size of the crowd at Friday's inauguration became a source of debate after Trump said on Saturday that more than 1 million people attended.There are no official government estimates of the crowd size, but independent <a href="http://www.npr.org/2017/01/21/510977543/campaign-trail-trump-on-display-as-he-goes-to-cia-on-first-day-as-president">estimates</a> put it at closer to 250,000 attendees, while <a href="https://www.theatlantic.com/politics/archive/2017/01/inauguration-crowd-size/514058/">metro ridership statistics</a> and photographs comparing Trump's inauguration with past inaugurations suggested that the number was far lower than the White House claimed.Spicer also attempted to point out the media's errors, noting Time reporter Zeke Miller's inaccurate Friday report that the Marin Luther King Jr. bust in the Oval Office was removed - a brief report that Miller quickly corrected and apologized for."You're in the same boat. There are times when you tweet something out or you write a story and you publish a correction. That doesn't mean that you were intentionally trying to deceive the American people, does it?" Spicer said. "And I think that we should be afforded the same opportunity."Spicer said that the information he was provided on Saturday, which was given to him by the inaugural committee, "came from an outside agency," and he highlighted the millions of people who watched on TV and streaming services.The press secretary said that he never claimed that the inauguration had the largest in-person audience, saying he always meant the total audience of viewers for the inauguration."I didn't say in person - both in person and around the globe to witness it," Spicer said. "I don't know how I could interpret that differently. That's literally what I said, to witness it both in person and around the globe."Later in the press conference, Spicer said that it was "not about the crowd size," citing commentary and punditry suggesting that Trump could not win key states in the 2016 election."There is this constant theme to undercut the enormous support that he has," Spicer said. "And I think it is unbelievable frustrating when you're told it's not big enough, it's not good enough, you can't win."Spicer's comments on Saturday raised concern from several former White House officials.Jay Carney, President Barack Obama's second press secretary, voiced his displeasure with Spicer's insistence on the crowd size on Twitter.During an appearance on CBS on Monday, Ari Fleischer, a press secretary for President George W. Bush, urged Spicer to correct his error."It concerns me. It's one thing to take on the press - that's a time-honored tradition in Washington, DC," Fleisher said. "The part about how people showed up in the audience at the inauguration, who cares. It's not worth fighting over."<div></div> <div class="margin-top"> <h3>NOW WATCH: <a href="http://www.businessinsider.com/donald-trump-press-secretary-sean-spicer-defends-claim-about-inauguration-viewership-2017-1">'Sometimes we can disagree with the facts': Watch Trump's press secretary spar with a reporter over inauguration viewership</a></h3> <div> <div> <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="Z3Z2k1OTE6sAqvdUv_aq6r4i-LeVgVKm" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div> </div> </div> </div>

'Is it always your intention to tell the truth?': ABC reporter challenges Trump press secretary after weekend berating

<div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"></div></div></div>President Donald Trump's top officials&#xa0;stood defiant for a second day in the face of withering media criticism over dubious White House claims about the size of Trump's inauguration.During a visit to CIA headquarters in Virginia on Saturday, Trump asserted&#xa0;that there were over a million people at Friday's&#xa0;inauguration, though&#xa0;independent&#xa0;<a href="http://www.npr.org/2017/01/21/510977543/campaign-trail-trump-on-display-as-he-goes-to-cia-on-first-day-as-president">estimates</a> put the crowd at closer to 250,000 attendees.There are no official government estimates of the crowd size, but photographic evidence comparing Trump's inauguration to past inaugurations and <a href="https://www.theatlantic.com/politics/archive/2017/01/inauguration-crowd-size/514058/">metro ridership statistics</a> suggested that the number was far lower than the White House claimed.But Trump officials refused to admit&#xa0;Trump made&#xa0;factual inaccuracies or exaggerations, instead taking aim at the media.During a brief appearance Saturday evening, White House Press Secretary Sean Spicer criticized&#xa0;some media outlets'&#xa0;coverage of the inauguration, asserting that Friday's crowd was the "largest audience to ever witness an inauguration."Top officials also took to the Sunday political talk shows to combat criticism of Trump's press conference, instead blasting the entire media over an inaccurate Friday report from Time's Zeke Miller that the bust of Martin Luther King Jr. was removed from the White House. Miller corrected his story within minutes, apologizing to Spicer, who accepted his apology on Twitter.Chief of Staff Reince Priebus <a href="http://www.businessinsider.com/reince-priebus-trump-crowd-size-photo-chris-wallace-2017-1">dismissed</a> Fox News anchor Chris Wallace's question about whether the battle over crowd size would "benefit the American people.""It really isn't about crowd size. What it's&#xa0;about is honesty in the media," Priebus said.He continued: "The media from day one has been talking about delegitimizing the election. Talking about the Russians, talking about everything you can imagine except the fact that we need to move this country forward.Appearing on "Meet The Press," Trump adviser Kellyanne Conway <a href="http://www.businessinsider.com/chuck-todd-kellyanne-conway-sean-spicer-press-briefing-falsehoods-2017-1">similarly deflected</a> questions about Trump's misstatement by lashing&#xa0;out at Miller, as well as&#xa0;host Chuck Todd for characterizing Spicer's statements as&#xa0;falsehoods."If we're going to keep referring to our press secretary in those types of terms I think that we're going to have to rethink our relationship here. I want to have a great open relationship with our press. But look what happened the day before talking about falsehoods," Conway said, referring to Miller.At times, both Priebus and Conway blamed the media for covering the story at all.&#xa0;Speaking with CBS' John Dickerson on "Face The Nation," Conway said it was "disappointing to get into this argument about crowd control," while on Fox News, Priebus falsely claimed&#xa0;that media outlets did not cover the substance of Trump's remarks at the CIA.For their part, the journalists&#xa0;appeared frustrated by the&#xa0;Trump team's obfuscation and denial.Wallace dubbed the conversation over crowd size "ridiculous," but&#xa0;continued to insist that having seen the crowds from the National Mall, they were far smaller than the president and Priebus claimed."I was there, I was there on the mall," Wallace said, adding moments later. "I'm telling you, there were huge, empty areas there."Todd was even more blunt,&#xa0;saying&#xa0;he was "befuddled" that the administration was arguing over falsehoods and criticizing the media writ-large for Miller's&#xa0;hastily corrected inaccurate report.After Conway repeatedly refused to concede that the inauguration crowd size was smaller than the administration claimed, Todd admonished the adviser for characterizing the falsehoods as "alternative facts.""I'm sitting here trying to answer basic questions and you're trying to attack me with some weird Twitter feed you guys are obsessed with," Todd said.Other media figures also expressed alarm at the White House's&#xa0;claims.&#xa0;Spicer's briefing was harshly criticized by some past White House press secretaries from former presidents George W. Bush and Barack Obama's administrations.&#xa0;<div></div><div></div> <div class="margin-top"> <h3>NOW WATCH: <a href="http://www.businessinsider.com/protesters-clash-trump-supporters-trump-was-sworn-in-2017-1">Watch protesters and Trump supporters get into a fiery argument on the National Mall right after the new president was sworn in</a></h3> <div> <div> <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="9xaG0yOTE6rBAkJhxqPfTc2on9eUdXEm" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div> </div> </div> </div>

White House goes to war with the press over dubious claims about crowd sizes

<div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"></div></div></div>In his annual address to the nation on Thursday Russian President Vladimir Putin announced that the country's reserve funds, usually earmarked for investment in state projects, should be used to bail out troubled Russian banks. In doing so he revealed just how grim the prospects for financial institutions have become following the rouble's collapse. The Russian private sector appears to be on state-funded life support.
In particular, the move strongly suggests that the Russian banking system has been running out of collateral that can be used to get dollars from the central bank. Access to dollars is critical because the banks took out foreign-currency loans from investors that they have to pay back in the same currency. <a href="http://uk.businessinsider.com/the-rouble-is-collapsing-at-the-worst-possible-time-for-russian-businesses-2014-12">Current estimates suggests Russian businesses need to repay a total of $35 billion this month</a>.
Unfortunately Russian banks face major challenges funding this at present with Western sanctions freezing them out of global capital markets on the one hand and a weakening domestic economy putting pressure on profits on the other. These issues have been compounded by a fall of around 40% in the value of the rouble since June. As it falls it becomes increasingly difficult to pay back those debts because the rouble is becoming less and less valuable, making those debts more and more expensive.
Usually it is the job of the central bank to provide emergency funding for a country's banks. In Russia this is typically done through what are know as "currency repo auctions," where banks offer collateral (such as high-quality bonds) in exchange for access to currency, especially dollars, that they need to meet foreign-currency obligations.
However, there has been limited use of this facility by Russian banks despite the rouble falls. The central bank had tried to explain this by saying that low demand was a consequence of there being plenty of dollar liquidity in the financial system.
Putin's statement that the country's reserve funds should be used instead to back its banks strongly suggests that this claim was wrong. There was not a lack of demand, rather the banks' collateral was insufficient to get dollars in exchange.
On Thursday the Russian central bank cut the foreign exchange repo rate, the interest rate it charges on the currency it gives to banks. The rate fell from 1.5% above the London Interbank Offered Rate (Libor) - the benchmark interest rate at which banks lend to each other - to 0.5% above Libor. A lower interest rate should make it less expensive for banks to borrow from the central bank and therefore more appealing.
The rate cut illustrates that the central bank itself is growing concerned about the ability of Russian banks to meet their debt repayments. If they fail to pay, it could trigger a wave of defaults that would further hit the fragile Russian economy, which is already expected to fall into a recession in 2015.
Yet if the problem is a shortage of collateral these measures are unlikely to be enough. Back in February, JP Morgan analysts warned of just such a scenario: around 60% of available collateral was already pledged of an upper limit of around 75%. That top level is the point at which JPM says the stress in the banking system, in the form of increased rsk of default, may start rising rapidly. 
We appear to be near that point.
Judging by today's news, banks appear to have been forced instead to seek help from the state.
This would explain Putin's move to divert money usually earmarked for infrastructure investment (for example, in Russia's ageing road and rail network) into a bank bailout. <a href="http://www.reuters.com/article/2014/12/04/us-russia-putin-banks-idUSKCN0JI0W520141204">Reuters quotes Putin as saying</a>:
Using our reserves, firstly, the National Wealth Fund (NWF), I propose to ... recapitalise leading domestic banks with funds offered ... to use for lending to the most important projects in the real sector of economy.
The news wire reports that VTB and Gazprombank have already applied for 250 billion roubles ($4.7 billion) and up to 100 billion roubles in additional support. This would put a further dent in Russia's reserves after the country saw total international reserves drop some $90 billion so far in 2014, mostly in failed attempts to bouy the falling rouble.
It might also open the door for non-bank companies to lobby for additional support. Oil company Rosneft requested 2 trillion roubles last month but was turned down.

Putin Just Announced A Massive Foreign Currency Bailout For Russia's Collapsing Banks

<div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"></div></div></div>Last month Russian Finance Minister Anton Siluanov announced that Rosneft, Russia's largest oil company, had requested 2 trillion roubles (then $49 billion) from the state's National Wealth Fund (NWF) to help it meet its funding requirements. The request was refused but it left questions over how the oil company planned to meet its $30 billion in debt repayments due over the next year after the oil price collapse of recent months.
We now have the answer - a large part of it will be paid by China.
As part of the deal struck between China and Russia at the Asia-Pacific Economic Cooperation (APEC) Forum in Beijing, Rosneft has agreed to sell a 10% stake in a Siberian unit to state-owned China National Petroleum Corp. The news was seen as evidence of Moscow seeking to deepen ties with Beijing as Western sanctions over Ukraine have left it isolated from European and American markets.
It is the second such deal to have been struck this year after a $400 billion agreement was reached in May between state-owned gas companies Gazprom and CNPC (China National Petroleum Corporation).
Not only have the deals helped in part to sooth fears over Russia's stagnating economy but they now also appear to have backstopped Russian companies that have been frozen out of international capital markets.
Moreover, a combination of the oil price falling from $115 a barrel in June to below $82 on Wednesday and <a href="http://uk.businessinsider.com/russia-is-facing-a-full-blown-currency-crisis-2014-11">the collapsing rouble had compounded pressure over recent months</a>. Rosneft's $30 billion bill went from being worth around 1 trillion roubles in June to around 1.4 trillion as at Wednesday's exchange rate, while lower oil prices squeezed its revenues.
The Russian business daily <a href="http://www.vedomosti.ru/companies/news/35882801/moodys-rosneft-vyplatit-osnovnoj-obem-dolga-do-konca-marta#ixzz3Irrjqu5Q">Vedomosti quotes Moody's investor services as saying</a>:
"Rosneft is set to repay $21 billion of debt, which expires between the fourth quarter of 2014 and the first quarter of 2015 [primarily] from its own reserves, which are worth more than $20 billion, and with the help of backup lines of credit from Russian banks of $6 billion." 
Draining the companies capital buffers in this way might seem foolhardy given that the company will still have around $9 billion worth of repayments outstanding and ongoing spending commitments. Here China's role becomes clear. According to Moody's, Rosneft "can get significant advances from Chinese state-owned CNPC on account of oil supplies" in 2015, and that should be sufficient to cover the remainder of its debt payments.
The deals have helped bind the corporate liabilities of the two countries together. And, unlike China, Russia's companies are not in as good health as they ought to be.
<a href="http://www.businessinsider.com/rosneft-profit-hurt-by-ruble-2014-10">Rosneft's third quarter profits were all but wiped out</a> as falling oil prices and the cost of sanctions bit into its bottom line. In September <a href="http://www.reuters.com/article/2014/09/09/us-ukraine-crisis-russia-rosneft-idUSKBN0H40HA20140909">the company pledged to cut up to 25% of the 4,000 staff based at its Moscow headquarters</a> to reduce costs.
Igor Sechin, Rosneft president and close ally of Russian president Vladimir Putin, tried to dismiss fears over the firm on Wednesday saying the refusal of its request for state support was "neither critical nor dramatic" but was careful to leave the door open in case the state alters its position.
However, former finance minister <a href="http://www.bloomberg.com/news/2014-11-11/ex-finance-minister-says-rosneft-must-stay-away-from-state-fund.html">Alexei Kudrin issued a warning to the company over applying for state funds</a>.
"My advice to Rosneft is not to take from the Wellbeing Fund," he said. "Even if the Wellbeing Fund became simply a source of anti-crisis financing instead of the principal insurance for the pension fund, that means that it will be judged that Rosneft is in crisis. That's not in Rosneft's interests."
The Russian state has already burned through a large amount of its foreign currency reserves defending the rouble, so it may be unwilling to step in to cover corporate debt repayments, which are set to reach $140 billion in 2015.
With their access to Western capital markets blocked by sanctions it appears that Russian corporates will increasingly have to look towards trading partners in the east for support. The question now is whether Beijing will continue to view the deals it has struck as being to its own advantage.

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