If you think Covid-19 has only affected the pocket of Joe Public, think again. With high spending and dwindling national assets, the Russian government now owes more money than the sum total of reserves in the country’s coffers.

In practical terms, the effect is more of a dent to national pride than any real danger to the country’s economy. After all, every single G7 state, not to mention India and China, would be unable to pay off its debts if urgently required. However, Moscow has placed a high value on not being beholden to creditors.

In April, at the beginning of the coronavirus crisis, Russia’s combined deposits in the central bank and commercial banks reached a record 17 trillion rubles ($240 billion), exceeding the national debt by almost 2.5 trillion rubles ($34 billion). However, by the beginning of July, deposits had dropped so significantly that state debt had overtaken assets by 1.55 trillion rubles ($21 billion). (RT)