March 26 (Reuters) - Russia's President Vladimir Putin has asked oligarchs to donate to the country's budget in a bid to stabilise the country's finances as he presses on with his invasion of Ukraine,
Kremlin denies Putin asked businessmen to fund Russian war effort
Kremlin Response to Reports on Business Donations
MOSCOW, March 27 (Reuters) - The Kremlin on Friday denied reports that President Vladimir Putin had asked leading businessmen to donate money to stabilise Russia's finances as it presses on with the war in Ukraine.
The reports, citing unnamed sources, were published by independent Russian outlet The Bell and by the Financial Times after Putin held a closed-door meeting with business leaders on Thursday.
Official Kremlin Statement
"It's not true that Putin made such a request," Kremlin spokesman Dmitry Peskov told reporters.
Businessman's Initiative
However, he said a participant at the meeting had said he wanted to donate a "very large sum of money" to the state.
This person had said that most of the businessmen present had started up in the 1990s and the start of their business was linked to the state one way or another, so many of them considered it their duty to contribute, Peskov said. He did not name the individual involved.
Putin's Reaction to the Initiative
"This was absolutely his initiative, and not President Putin's. Although, of course, the head of state welcomed such an initiative," Peskov added.
He said it was not true that the money was for the war.
Media Coverage and Financial Pledges
The Bell, reporting on the meeting, said Putin had discussed military funding and said that Russia would fight on until it captured the remaining areas of Ukraine's eastern Donbas region not under its control.
The Bell said billionaire Suleiman Kerimov had pledged at the meeting to donate 100 billion roubles ($1.23 billion). Reuters was not immediately able to reach Kerimov for comment.
Russia's Economic Situation
Russia is running a budget deficit and facing an economic slowdown as the war in Ukraine, now in its fifth year, drags on. However, it is set to receive a major windfall from a spike in oil prices since the U.S. and Israel launched a war against Iran on February 28.
Government Spending and Oil Prices
Sources told Reuters earlier this month that the government was preparing a possible 10% cut to all "non-sensitive" spending in this year's budget, but the final decision will hinge on the sustainability of the oil price rise.
Additional Information
($1 = 81.2000 roubles)
(Reporting by Angela Christy in Bengaluru and Dmitry Antonov in Moscow, writing by Mark Trevelyan; Editing by Sharon Singleton)
