Issue 4280. Last Updated: 11/23/2009

Oil Fund Manager Warns on Spending

By Catrina Stewart
""Irrational"" domestic spending from the $150 billion stabilization fund could fuel further inflation and make the economy once more dependent on the whims of global oil markets, Pyotr Kazakevich, the official in charge of the fund, warned on Tuesday. Few could have foreseen that the stabilization fund -- first proposed by President Vladimir Putin's maverick economic adviser Andrei Illarionov -- would accumulate so much in the four years since its creation. By year's end, the government expects to be sitting on a cash hoard of $158 billion.

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