Politicians and banks alike never call a spade a spade or a bailout a bailout. In the United States in 2008, the $700 billion bank bailout was called “Troubled Asset Relief Program.” In Russia in 2014, the $1.8 billion bailout for VTB Bank was called a “subordinated deposit.”
The plain fact of the matter remains: One of Russia’s biggest state controlled banks just received $1.8 billion from Russia’s $80 billion National Wealth—read: oil money—Fund and it is very unclear whether or when this money has to be paid back.
It is also unclear what exactly the money is for, although VTB bank stated on its website it will be used for “sustainable infrastructure projects.”
It is far more likely the falling ruble is indirectly responsible for the capital infusion.
