Russia may spend $1.3b from wealth fund to recapitalise Aeroflot - Ifax

Russia is considering spending around 107b roubles ($1.34b) from its National Wealth Fund (NWF) to recapitalise flagship airline Aeroflot, the Interfax news agency reported on Wednesday, citing an unnamed source. The planned move is part of a new package of measures that the government is preparing to support economic development following Western sanctions over Moscow’s actions in Ukraine. The NWF, which accumulates the country’s oil revenues, will buy into a new share issue by Aeroflot via an open subscription and spend a further 57b roubles on equity stakes in other Russian airlines to help them pay debts, Interfax reported. According to Interfax, the government’s stake in Aeroflot must not fall beyond the current 57.34% as a result of the new share sale. Russia spent 80b roubles buying Aeroflot shares in 2020 to help it weather the coronavirus crisis. Aeroflot and the Russian finance ministry did not immediately respond to requests for comment.<br/>