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Murmansk Runs Out of Cash to Pay for Social Welfare, Report Claims

Cash shortages have caused Russia's northern Murmansk region to fall behind on social welfare payments such as child care subsidies as it struggles to cope with Russia's economic downturn, a news report said.

No payments have been made since the start of this month in a number of cities and towns in the Murmansk region above the Arctic Circle, FlashNord news portal reported Tuesday.

An unidentified employee of the Murmansk housing subsidy administration said she did not know when payments would resume, adding: "There is no money," according to the report.

But the region's labor and social affairs chief, Svetlana Videneyeva, denied financial shortages and promised that "all families in the Murmansk region will receive subsidies within the month," the report said. 

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