Russia continues to burn its reserves to support its military economy. The reserves of the aggressor country were also spent to support the economy under large-scale sanctions.
Transmitted by UNN with reference to Bloomberg.
Details
Last year, Russia spent almost a quarter of the available reserves of the National Welfare Fund to keep the economy under martial law and finance its invasion of Ukraine.
This fund has decreased by 57%. The publication recalls that in early 2022, before President Vladimir Putin ordered a full-scale invasion of Ukraine, the fund was said to have 8.9 trillion rubles.
According to the Ministry of Finance, the National Welfare Fund remained almost unchanged in 2024 at about 12 trillion rubles ($117 billion). However, its reserves of cash and investments that can be easily liquidated decreased by 24% to 3.8 trillion rubles as of January 1 compared to the beginning of last year.
In a report on possible monetary policy scenarios published in October, the Bank of Russia saw risks of complete depletion of the National Welfare Fund in 2025 in the face of “a significant deterioration in external conditions” and a collapse in oil prices.
Recall
“Russian Railways cuts its investment program by 30% due to rising borrowing costs. Increased military cargo and sanctions create logistical problems in trade with China.