The Russian government is considering setting up a specialised lender to support the defence industry in a bid to reduce the risks to existing lenders from US sanctions, according to business daily Kommersant .
The Russian Finance Corporation (RFK), a subsidiary of state-owned Rostec since 2013, is the most likely candidate to be chosen, Kommersant said.
Such a bank is needed because of the risk of further US sanctions, the paper said, just a day (26 October) before the United States introduced further sanctions against Russian defence companies.
The idea of establishing a bank for the defence sector arose when President Trump signed the so-called CAATSA (Countering America’s Adversaries Through Sanctions) law at the beginning of August.
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