Russia has burned through almost half of the liquid reserves in its national wealth fund as it bleeds money amid the war in Ukraine
Russia has burned through almost half of the liquid reserves in its national wealth fund as it bleeds money amid the war in Ukraine
Liquid assets under Russia's National Wellbeing Fund fell from 8.9 trillion rubles in January 2022 to 5 trillion rubles at end-2023.
So how many more years before they eventually run out of budget for this war?
This fund will last this year and depending on how much money Russia needs and the oil price next year as well. However nobody looses wars due to running out of money. You loose on the battlefield or due to the suffering of the population being to bad. The fund running empty just means average Russians will get worse government services and economic support is going to fall. If Putin cuts back too much, he has a revolution on his hands.
They started spending that money after starting the war, so it's use is related to the war in question. Thus, when they will run out, whatever they were paying for (war related) will stop getting money.
It might not be a direct financing of the battlefield activities, but while the victory will be in the battlefield, the biggest chunk of the battle actually happens in preparation and logistics.
In other words, I'm hopeful that this will have a major impact on the invader's ability to cause harm.
Since they've entered true wartime spending, a while.
This is the best summary I could come up with:
The stash of liquid assets in Russia's national wealth fund has fallen over 44% since Moscow invaded Ukraine, according to a Bloomberg report of Russian finance ministry data on Wednesday.
The massive slump in the national wealth fund's liquid assets came as its holdings in Russian companies and in infrastructure bonds surged by 2 trillion rubles, per Bloomberg calculations.
Russia's finance ministry also used around 3 trillion rubles from the fund to cover its budget deficit in 2023 after it doubled defense spending in the same period.
Russia could be running out of time and money soon as it keeps funding the war in Ukraine, which is soon heading into its third year.
While Russia's economy still appears resilient, it is dealing with a swathe of Western sanctions and weak international oil prices that have fallen about 10% over the past 12 months.
Alex Isakov, an economist at Bloomberg Economics, said Russia's national wealth fund's liquid assets will last for another year or two if the country's oil export prices fall below $50 a barrel.
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