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Putin's Economic Team Split Over Kremlin's Huge Spending Plans

  • Billions in spending seen as way to revive sluggish growth
  • Central bank warns cash flood could hit economic stability
Bank Of Russia Governor Elvira Nabiullina News Conference
Photographer: Andrey Rudakov/Bloomberg

As the Kremlin debates how to spend tens of billions of dollars from its rainy-day fund to jump-start growth, rare public divisions are emerging within the economic team that’s made Russia’s bonds an investor favorite.

The tensions highlight the growing pressure from President Vladimir Putin to revive the sluggish economy, which has battered his public support and fueled protests around the country. The central bank and critics of the spending plan say the extra money won’t do much to get growth going but could undermine hard-won economic stability that’s earned Russia praise from investors, rating agencies and the International Monetary Fund.