Russia Said to Shield Reserves as Putin Taps Sovereign Fund

Russia will only take its battle against inflation so far. Reserves and the ruble’s free float is where it draws the line.

Authorities are looking at how to keep tapping a wealth fund to cover the budget deficit even though their method of doing so floods the economy with excess cash, according to four officials familiar with the discussions. For now, the central bank wants to stick to printing rubles when the government withdraws foreign currency, instead of converting it through sales on the open market, the people said, asking not to be named because the deliberations are private.